Elon Musk Denies Reports Of xAI Raising $15 Billion In New Funding Round

• Musk’s rebuttal follows a CNBC report stating that xAI raised $15 billion in its latest funding round.
• The report indicated that xAI will use the capital to fund the purchase of graphics processing units for training its large language models.
• The AI startup has a supercomputer named Colossus, housed in its facility located in Memphis, Tennessee.

Elon Musk, founder of xAI, on Thursday denied reports that the AI startup had raised $15 billion in its latest funding round.

In a post on X, Musk said the report was “false.”

Musk’s rebuttal follows a report by CNBC, citing sources, which stated that xAI raised $15 billion in the latest funding round and that the new round valued xAI at $200 billion. The report stated that xAI will use the capital to fund purchases of graphics processing units (GPUs) to train its large language models.

xAI’s Supercomputing Efforts

xAI has a supercomputer named Colossus, housed in its facility located in Memphis, Tennessee. Built in 122 days, xAI says it was the most powerful AI training system when it went operational in July 2024. The company said it doubled the system to 200k GPUs in 92 days.

The company has a roadmap for expanding this to a million GPUs. Over time, Musk plans to increase this by 50 times.

“The @xAI goal is 50 million in units of H100 equivalent-AI compute (but much better power-efficiency) online within 5 years,” Musk said in a post on X.

Proposal For Tesla Investment In xAI

Last week, Tesla shareholders voted on a proposal enabling the company to invest in xAI.

Brandon Ehrhart, General Counsel at Tesla, stated that the proposal received 1.06 billion votes in favor, compared to 916.3 million votes against, according to a report by Bloomberg Law. However, 473 million votes were abstained, and Tesla’s bylaws count abstentions as votes against, which meant that the investment proposal did not pass the vote.

xAI is not listed publicly at the moment. Retail sentiment on Stocktwits around the company trended in the ‘neutral’ territory at the time of writing.

Also See: Ondas Stock Soars Pre-Market After Q3 Beat, Company Raises Revenue Forecast For 2025

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