In the latest twist surrounding Elon Musk’s AI venture, xAI, conflicting reports have emerged regarding the company’s valuation and fundraising efforts. Bloomberg initially reported discussions for a valuation between $15-20 billion and claimed xAI had secured $500 million in commitments from investors, aiming for a total of $1 billion. Elon Musk promptly dismissed these reports as “fake news.”
Bloomberg, however, stands by its report, stating that discussions are indeed underway for a tender offer valued between $500 million and $750 million. Sources cited by the publication suggested a potential share price of around $95 each. While xAI has not issued an official statement, Bloomberg quoted undisclosed sources familiar with the ongoing talks. Reuters reported that the company has not responded to queries.
This is not the first time Musk has refuted reports related to xAI’s financial matters. In December, he denied fundraising for xAI, despite the start-up’s filing with the United States securities regulator indicating plans to raise $1 billion through an equity offering. The filing also disclosed that xAI had already secured approximately $135 million, without revealing the identities of the investors.
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Elon Musk officially launched xAI in July 2023, positioning it as a response to concerns about AI efforts by major tech companies. Musk has consistently criticized Big Tech for what he perceives as excessive censorship and inadequate safety measures in their AI initiatives. xAI is positioned to compete with industry giants such as Google, Microsoft, OpenAI, and Anthropic.
In a noteworthy development in November, Musk announced xAI’s first language model, Grok, trained on data from X and equipped with real-time access to the social media platform. The company’s endeavors in the AI space have generated significant interest and speculation, making accurate information about its valuation and funding critical for investors and industry observers alike. As the conflicting narratives persist, the industry awaits official statements from xAI to clarify its current financial standing and plans.
