Elon Musk's artificial intelligence company, xAI, has successfully secured $500 million in commitments from investors toward their goal of raising $1 billion. According to Bloomberg's report on Saturday, the company is currently discussing a valuation ranging between $15 billion and $20 billion. However, Musk himself refuted these claims on X, the platform formerly known as Twitter, dismissing the report as "fake news."

Musk established xAI as an alternative to Open AI, where he was a co-founder but ultimately parted ways due to disagreements over how to monetize the technology. As part of xAI's product lineup, the company has developed a chatbot named Grok using social media posts from X, a platform also owned by Musk.

Interestingly, Bloomberg reports that there is likely to be an overlap in investors between xAI and Open AI. Notable backers of Musk's $44 billion takeover of Twitter include Larry Ellison, Sequoia Capital, Andreessen Horowitz, Fidelity Management & Research Co., and Saudi Prince Alwaleed bin Talal.

Musk previously stated that equity investors in X would own a 25% stake in xAI. The final terms of agreement between Musk and investors are expected to be finalized within the next couple of weeks.

It's worth noting that last December, Musk denied any plans for his artificial intelligence company to raise funds, directly contradicting reports that the startup had filed with the U.S. securities regulator to raise up to $1 billion through an equity offering.

Musk initially launched xAI in July of the previous year as a response to the perceived shortcomings of Big Tech's AI efforts. He voiced concerns over excessive censorship and a lack of sufficient safety measures within these projects.

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