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Elon Musk Denied The Rumors That xAI Got 500M Dollars From Investors

Key Takeaways
  • Elon Musk disputes reports on X claiming xAI raised $500 million of its $1 billion goal, denying any investments in his company.
  • Musk announced on Twitter that X equity investors would get a 25% ownership stake in xAI, suggesting incentives for substantial investments.
  • Musk presents xAI as a superior alternative to OpenAI, launching Grok to compete with ChatGPT. Grok's access to up-to-date data from X sets it apart from ChatGPT.
22-Jan-2024 By: Sudeep Saxena
Elon Musk Denied The

Elon Musk Confirmed on X, Didn't Received Any Fund

Elon Musk, the world's wealthiest individual and a crypto enthusiast, has refuted the accuracy of a report on his social media platform, X, which claimed that Musk's firm, xAI, had achieved $500 million out of its $1 billion fundraising goal.

Musk responded to a user's inquiry on X about investments made by stakeholders in his artificial intelligence firm, xAI, categorically denying any investment in his company.

It is noteworthy that in November, Elon Musk Twitter News had announced that equity investors in X would receive a 25% ownership stake in xAI.

This implied that if investors had invested $10 billion in X, they would be incentivized to invest $2.5 billion or more in xAI. Moreover, Elon Musk has also updated about the payment services on X, which will get started by mid-2024.

xAI launched as an alternative to OpenAI

Elon Musk has consistently considered his xAI superior to Google and OpenAI from the outset. The inception of xAI Elon Musk was presented as an alternative to OpenAI, where Musk launched his chatbot Grok to compete with OpenAI's ChatGPT.

While ChatGPT has data only up to 2019, Grok has access to the data from Musk's social media platform X, which is more up-to-date. Although OpenAI's GPT-4 also provides information with current data, Grok and ChatGPT have been continuously compared, with both having distinct features.

The difference lies in their information collection, as they gather data from different sources, making them unique from each other.

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