Elon Musk Dismisses xAI’s $200 Billion Valuation Fundraising Reports as False

• Elon Musk labels reports of xAI raising $10 billion at a $200 billion valuation as “fake news.”
• xAI has not raised any funds, contrary to claims of a $10 billion financing round.

Elon musk has dismissed claims that his artificial intelligence company of Elon Musk, xAI, was raising capital in the tune of 10 billion at a valuation of 200 billion dollars. Musk was quick on social media to refute these allegations, declaring them fake news and explaining that xAI has no fundraising efforts at all. The first published reports by CNBC and quoted by sources with knowledge of the situation had noted a possible debt and equity financing round after an earlier valuation of xAI of around $150 billion.

Musk Denies Fundraising Efforts

This statement by Musk flatly contradicts the speculation on the fundraising strategies of xAI. Having pioneered the creation of AI to make scientific discovery among humans faster, the company has become a center of attention in the fast-expanding AI industry. The purported 10 billion increase would have made xAI one of the most valuable AI startups in the world, as valuations in the sector have been on the rise. For context, Anthropic, a rival AI firm, secured $13 billion this month, reaching a valuation of $183 billion, while OpenAI’s valuation soared to $500 billion through secondary stock sales. Despite these comparisons, Musk’s denial suggests xAI is not currently seeking external capital, leaving its financial strategy unclear.

xAI has been under scrutiny by the blockchain and tech investment communities because of its potential to be disruptive to industries that depend on sophisticated computing. The fact that Musk refuted the fundraising reports has led to debate over the quality of valuation estimates in the AI industry, where unrealistic numbers frequently feature prominently. Blockchain and decentralized technology investors, often overlapping with AI application, are specifically interested in the direction that xAI takes because it prioritizes scalable, data-heavy systems.

CNBC Reports Highlight AI Valuation Surge

The original CNBC article pointed to an increasing trend in valuations of business developing foundational AI models. Sources had alleged that xAI fundraising was among Musk’s attempts of to raise substantial capital to compete with the industry giants such as OpenAI and Anthropic. The report also pointed out that the former xAI valuation of $150 billion is already attracting venture capital and private equity firms. Nevertheless, Musk categorical dismissal of these statements has diverted attention to the real financial status of the company. Without proved fundraising efforts, the xAI expansion and its scaling capabilities in the competitive AI world remains speculative.