Varney & Co. host Stuart Varney responds to a Wall Street Journal article discussing the alleged drug habit of Tesla CEO, Elon Musk.
Elon Musk, a prominent billionaire, refuted claims that his AI company, xAI, had garnered commitments amounting to half of its $1 billion fundraising target.
Dismissing the assertions, Musk took to X, formerly known as Twitter, to address a user’s reference to a Bloomberg News report, stating, “This is simply not accurate.”
Sources familiar with the matter revealed that Bloomberg had suggested xAI was in talks regarding a valuation ranging from \(15 billion to \)20 billion, with the terms subject to potential alterations in the upcoming weeks.
The report further indicated that Musk, alongside investors, is in the process of finalizing investment terms. Some stakeholders are exploring the possibility of acquiring computing power instead of, or in conjunction with, xAI equity shares.
Billionaire Elon Musk refuted reports claiming that his AI startup, xAI, had reached half of its $1 billion fundraising objective. (Hakan Nural/Anadolu Agency via / Getty Images)
In December, xAI filed a document with the Securities and Exchange Commission (SEC) outlining its intention to raise \(1 billion through an equity offering. Notably, over \)134 million had already been secured through this initiative.
The document also confirmed that xAI had entered into a binding agreement for the purchase and sale of the remaining approximately $865 million.
Musk reiterated his stance on the fundraising reports, asserting that xAI was not currently seeking additional capital.
xAI, established by Musk in July, unveiled the Grok chatbot in November. (Jaap Arriens/NurPhoto via / Getty Images)
In July, Musk introduced xAI as a response to the AI endeavors of major tech corporations, criticizing them for excessive censorship and inadequate safety protocols. Musk, a co-founder of OpenAI, the developer of ChatGPT, resigned from its board of directors in 2018. His vision for xAI revolves around creating an AI that seeks maximum truth and aims to comprehend the universe’s essence.
Despite its association with the X social media platform, xAI operates independently while maintaining close ties with Tesla.
xAI introduced the Grok chatbot in November, designed to rival ChatGPT by OpenAI and Bard by Google. The chatbot, inspired by the “Hitchhiker’s Guide to the Galaxy,” offers witty responses and suggestions for further inquiries. Initially accessible to X Premium+ subscribers in the U.S., its availability expanded to subscribers in Australia, Canada, India, and various other countries.
