Elon Musk blasts CNBC report that xAI raised $15B as ‘false’
Elon Musk blasted a CNBC report that claimed his firm, xAI, has raised $15 billion as “false.”
The news outlet reported that xAI has added $5 billion to a $10 billion round it reported on two months ago, citing anonymous sources.
That $10 billion round valued the company at $200 billion, CNBC stated in September. Musk previously called that report wrong, too.
Asked for comment, xAI told the The Post, “Legacy Media Lies,” an apparent automated reply.
CNBC did not immediately respond to The Post’s request for comment.
Sources told the news outlet the company is planning to use the fresh funding to make graphic processing units for advanced large language models.
Tech giants have been spending big on AI infrastructure – even as some investors are becoming weary that AI stocks are being overvalued — a view that appeared to spark a massive sell-off last week.
Musk’s AI startup, which was founded in July 2023, has been rushing to build out massive data centers to compete with rivals like OpenAI.
In particular, xAI has focused on buying up land in Memphis, Tenn., to build out its planned Colossus supercomputer, sparking some controversies along the way.
Environmentalists have decried the use of natural gas-burning turbines, arguing they worsen the surrounding area’s air quality.
Also, some critics have accused his Grok chatbot and Grokipedia – an AI-powered alternative to Wikipedia – of bias, though others have praised the site for taking a more neutral stance than lefty Wikipedia.
Lately, Musk has been focused on integrating his many business ventures.
In March, xAI acquired Musk’s social media company X, formerly known as Twitter, in a deal that valued the platform at $33 billion.
Some newer Tesla models feature xAI’s Grok chatbot in their “infotainment” systems, while xAI has purchased tens of millions of dollars worth of Tesla’s battery energy storage systems for use in its data centers.
During the annual shareholder meeting last week, Tesla investors approved Musk’s $1 trillion pay package after he threatened to leave if he didn’t get it.
The eye-popping pay plan is the largest on record and could make Musk the world’s first trillionaire. He will have to hit a series of ambitious performance targets over the next decade to receive the total sum.
Tesla investors did not, however, approve a measure to allow the electric-vehicle maker to invest in xAI.
