Elon Musk has denied a report that his artificial intelligence startup, xAI, is raising $10 billion in funding at a $200 billion valuation. Musk took to social platform X to respond to the CNBC report, saying "Fake news. xAI is not raising any capital right now." This denial comes after the report suggested the funding would be used to build data centers using Nvidia and AMD graphics processing units and to hire expensive talent.
The alleged valuation would have made xAI one of the most valuable companies in the world, behind OpenAI, China's Bytedance, and Musk's SpaceX. However, Musk's statement contradicts this report, and it's worth noting that xAI has been expanding its AI infrastructure through data centers amid intense competition.
In related news, xAI has been making strides in the AI sector, including the development of its chatbot Grok, which has reached 64 million monthly users. The company has also been ramping up its data center capacity, including the Colossus supercomputer, to compete with OpenAI and Anthropic in the AI space.
