Elon Musk, CEO of Tesla, announced that his AI startup 'xAI' has secured $500 million (approximately 668.7 billion KRW) in funding, Bloomberg reported on the 21st (local time).
According to an anonymous source, xAI aims to raise $1 billion and has recently received investment commitments for half of that amount, $500 million, from investors. The valuation of xAI is being discussed in the range of $15 billion to $20 billion, with conditions expected to change over the coming weeks. The source explained that both parties plan to finalize the investment within weeks.
CEO Musk, who was a co-founder of OpenAI, the developer of ChatGPT, established xAI last year as a rival to OpenAI. He also officially launched xAI's first AI chatbot, 'Grok,' through X (formerly Twitter).
Accordingly, Bloomberg anticipated that many investors in X and xAI would overlap. Previously, Musk confirmed that investors holding shares in X would own 25% of xAI. Major investors who supported Musk's acquisition of Twitter include Larry Ellison, Sequoia Capital, Andreessen Horowitz, Fidelity Management & Research, and Saudi Prince Alwaleed bin Talal.
However, Musk denied Bloomberg's report on his X account, calling it "fake news".
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