Elon Musk denies funding talks for his AI firm xAI amid speculation

Entrepreneur Elon Musk clarified on Friday that his artificial intelligence venture, xAI, is not engaged in discussions with investors to secure funding, countering earlier reports suggesting otherwise.

In a statement shared on the platform X, Musk refuted claims of capital-raising activities, stating, "xAI is not raising capital and I have had no conversations with anyone in this regard."

The clarification comes in response to a report by the Financial Times which indicated that xAI was exploring fundraising opportunities with a target of up to $6 billion, valuing the startup at $20 billion. According to sources cited in the FT report, xAI has been in discussions with family offices in Hong Kong and is eyeing investments from sovereign wealth funds in the Middle East.

The AI landscape has witnessed escalating competition, with investors increasingly backing startups poised to leverage advancements in artificial intelligence, a sector that has gripped the attention of Silicon Valley in recent times.

This is not the first time Musk has found himself addressing speculation surrounding xAI's financial endeavours. Just last week, he refuted claims that the company had secured $500 million in commitments from investors towards a $1 billion funding target.

Musk's commitment to advancing AI safety is well-documented. While he co-founded OpenAI in 2015, he stepped down from its board in 2018. Last year, xAI made headlines with the launch of "Grok," a chatbot platform positioned as a competitor to OpenAI's ChatGPT.

Moreover, Musk has been vocal about the necessity for stringent controls over AI and robotics, particularly outside the realms of his electric vehicle company, Tesla. He recently underscored his discomfort with the idea of Tesla becoming a leader in AI unless he attains a 25% voting control within the company.