Elon Musk's AI company secures $500 million toward $1 billion funding goal: report

Elon Musk's artificial intelligence (AI) company, xAI, has secured $500 million in commitments from investors toward a $1 billion goal, Bloomberg News reported on Friday.

The artificial intelligence (AI) startup xAI is discussing a valuation of $15 billion to $20 billion, though terms could still change in the coming weeks, the report added, citing people familiar with the matter.

Musk and investors are expected to finalize terms in the next couple of weeks, and some parties are evaluating whether they can get computing power in addition to, or in some cases instead of, xAI equity shares, Bloomberg reported.


xAI could not be immediately be reached for comment.

Last December, Musk said his artificial intelligence company was not raising funds, a day after the startup filed with the U.S. securities regulator to raise up to $1 billion in an equity offering.

Musk launched xAI in July last year in response to Big Tech's AI efforts, which he has criticized for excessive censorship and a lack of adequate safety measures.