Elon Musk has sharply criticized a CNBC report that claimed his AI firm, xAI, raised $15 billion in fresh funding, calling it “false.” The news outlet had reported that xAI added $5 billion to a previously reported $10 billion funding round two months ago. According to CNBC, this round valued the company at $200 billion, but Musk had already dismissed the earlier valuation as inaccurate.
In a response on Twitter, Musk reiterated his stance, simply stating, “False,” denying the report’s accuracy. He was responding to sources who had suggested the new funding would be used for the creation of graphic processing units (GPUs) necessary for advancing large language models (LLMs), a key component in AI development.
Following the report, xAI issued a brief response to The Post, saying, “Legacy Media Lies,” seemingly an automated reply. CNBC did not immediately respond to The Post’s request for comment.
Musk’s xAI startup, founded in July 2023, has been quickly scaling up, aiming to compete with OpenAI and other industry leaders in the AI space. The company has focused heavily on building massive data centers, notably acquiring land in Memphis, Tennessee, for its ambitious Colossus supercomputer project, though it has faced environmental backlash due to plans to use natural gas-burning turbines, which critics argue contribute to air quality issues in the area.
In addition to the controversies surrounding its infrastructure, xAI has received mixed reviews regarding its Grok chatbot and Grokpedia, an AI-powered alternative to Wikipedia. Some have accused the platforms of bias, though others have praised them for offering a more neutral approach compared to more politically polarized alternatives like Wikipedia.
Musk’s focus on integrating his business ventures is also evident through his acquisition of X (formerly Twitter) by xAI in March, a deal valued at $33 billion. The integration of Grok into Tesla’s infotainment systems and xAI’s purchase of Tesla’s battery energy storage systems for its data centers underscore the synergy between Musk’s various companies.
Meanwhile, during Tesla’s recent annual shareholder meeting, Musk’s $1 trillion pay package was approved by investors, making it the largest pay plan in corporate history. The package, however, is contingent on Musk hitting a series of ambitious performance targets over the next decade. Despite the approval of this plan, Tesla investors voted against a proposal allowing the company to invest in xAI, highlighting the ongoing complexity of Musk’s business endeavors.
While Musk’s xAI continues to make strides in AI development, the controversy surrounding its funding and operations continues to fuel media scrutiny and investor interest in the future of the company.
