Today's Edition

• Musk’s AI Startup Secures $500 Million Toward $1 Billion Funding Goal…

• but then ... Elon Musk denies report claiming his AI firm secured $500 million funding

• Quote of the Day

• Tech Spotlight

• On This Day In History

📰 Musk’s AI Startup Secures $500 Million Toward $1 Billion Funding Goal…

Elon Musk's artificial intelligence company, xAI, is reportedly close to securing $500 million from investors, aiming towards a $1 billion fundraising goal. According to sources familiar with the discussions, who requested anonymity due to confidentiality, the company may be valued between $15 billion and $20 billion, although these figures are subject to change.

In a recent statement on X, the social media platform he owns, Musk labeled reports about the investment as "fake news." This development comes after Musk, who previously co-founded and departed from OpenAI due to disagreements over monetization strategies, launched xAI last year. The new venture focuses on a chatbot named Grok, uniquely developed using social media posts from X, providing it with access to more contemporary data than its competitors.

Notably, the investment landscape for xAI seems to mirror that of Musk's other ventures. Prominent investors in Musk’s $44 billion acquisition of Twitter, such as Larry Ellison, Sequoia Capital, Andreessen Horowitz, Fidelity Management & Research Co., and Saudi Prince Alwaleed bin Talal, are expected to show interest in xAI as well.

Musk has previously mentioned that equity investors in X would hold a 25% stake in xAI. This arrangement implies that these investors have the option to contribute to xAI, at least a quarter of their investment in X. For instance, a $10 billion investment in X could translate to a minimum $2.5 billion investment in xAI.

Final terms between Musk, investors, and xAI are anticipated to be concluded in the forthcoming weeks. Some investors are considering options beyond equity shares, potentially acquiring computing power to support their portfolio companies in developing new AI technologies.

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But then….. 👇️ 

📰 Elon Musk denies report claiming his AI firm secured $500 million funding

Tech magnate Elon Musk has publicly disputed a Bloomberg report alleging that his artificial intelligence (AI) company, xAI, has raised $500 million towards a funding goal of $1 billion. In a pointed response on X, Musk labeled the report as "fake news," following a user's share of the Bloomberg article.

Bloomberg's initial report, based on unnamed sources, suggested that xAI was actively seeking an additional $500 million from investors. The report also speculated on a potential company valuation ranging between $15 billion and $20 billion, though it indicated that these figures might be subject to future adjustments.

In a further dismissal of the claims on X, Musk reiterated his stance, stating, "This is simply not accurate," in response to another post regarding the same report. This contradiction by Musk casts doubt on the veracity of Bloomberg's claims and suggests a different financial trajectory for xAI.

Official filings with the U.S. Securities and Exchange Commission (SEC) reveal that Musk has, to date, secured $134.7 million for xAI. This figure stands in stark contrast to the numbers reported by Bloomberg, highlighting the discrepancy between Musk's assertions and media reports.

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🗣️ AI “Quote of the Day”

"In the pursuit of innovation, let reality be your guide, not the rumors that fly."

Created with ChatGPT / DALL-E

🚀 AI Tech Spotlight

🔍️ Automata - Repurpose your video content

byautomata.io offers a service for repurposing video and text content. It features tools like the 'Content Repurposing Autopilot' and 'Marketing Knowledge Base', and offers a Chrome Extension for LinkedIn. Users can transform videos into blogs, Twitter threads, and other formats, with over 150 content transformations available. The service offers a 'Light Repurposer' plan at a pay-as-you-go rate and a 'Power Repurposer' subscription for more frequent use. It aims to enable users to create content more efficiently and consistently across various platforms.

🗓️ On This Day In History

The Iran hostage crisis ended when Ayatollah Ruhollah Khomeini released 52 Americans who had been held hostage for 15 months.