-Elon Musk on Friday mentioned that xAI is not raising capital proper now, following a CNBC report earlier within the day on the AI agency raising $10 billion at a post-money valuation of $200 billion.
“Fake news. xAI is not raising any capital right now,” Musk mentioned on X.
According to the CNBC report, the funding was prone to go to constructing knowledge facilities utilizing Nvidia and AMD graphics processing models, wanted to develop next-generation AI, in addition to to rent costly expertise.
The AI startup has been ramping up its knowledge middle capability to coach extra superior fashions, because it seems to be to compete extra successfully with OpenAI’s ChatGPT and Anthropic’s Claude. Its supercomputer cluster in Memphis, Tennessee, referred to as Colossus, is touted as the most important on the planet.
Investor enthusiasm in the direction of AI startups has remained robust regardless of doubts over the tech trade’s spending.
If the $200 billion valuation within the CNBC report is correct, it might indicate an over twofold leap from the $75 billion in July, based on knowledge from Pitchbook.
It would additionally make xAI among the many most respected firms on the planet behind OpenAI, China’s Bytedance and Musk’s SpaceX.
OpenAI is in early-stage discussions a few inventory sale that will enable staff to money out and will worth the corporate at about $500 billion, Reuters had reported in August, whereas ByteDance is set to launch a brand new worker share buyback that can worth the Chinese expertise large at greater than $330 billion.
Anthropic had mentioned it raised $13 billion at a post-money valuation of $183 billion earlier this month.
Morgan Stanley had mentioned in late June xAI had accomplished a $5 billion debt increase alongside a separate $5 billion strategic fairness funding, because the startup regarded to increase its AI infrastructure by means of knowledge facilities amid intense competitors.
Musk had launched xAI in July 2023 as a substitute for OpenAI’s ChatGPT.
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