Elon Musk, the CEO of xAI, has firmly denied recent reports of discussions to raise capital for his artificial intelligence company. Multiple sources had claimed that xAI was seeking a substantial $6 billion investment, sparking discussions with potential investors in Hong Kong. However, Musk refuted these claims, stating that he had not engaged in any such conversations.
Diverging reports
Reports regarding capital raises for xAI have been conflicting. Earlier this month, Bloomberg reported that xAI had secured $500 million in its quest for a $1 billion investment. Musk promptly dismissed these reports as “fake news from Bloomberg.”
Elon Musk’s vision for xAI
Elon Musk’s vision for xAI is not solely focused on amassing capital. During Tesla’s Q4 and FY 2023 earnings call, Musk clarified his stance on the matter. He expressed his desire to act as a steward of powerful technology rather than seeking additional economic gains.
“I’m not looking for additional economics. I just want to be an effective steward of very powerful technology,”* Musk stated during the call. He also explained that his aim was to maintain strong influence without exercising full control, emphasizing the importance of responsible technology management.
Musk introduced xAI last year, unveiling Grok as its inaugural product. This development positioned xAI as a notable player in the competitive landscape of artificial intelligence.
The capital raise speculation
The Financial Times’ report suggesting xAI’s pursuit of a $6 billion investment raised eyebrows. The report cited anonymous sources familiar with the matter, stating that discussions with potential investors in Hong Kong were underway.
Elon Musk promptly took to social media platform X to dismiss the capital raise claims. He stated unequivocally that he had “had no conversations with anyone in this regard.” This assertion contradicted the reports of talks with Hong Kong investors.
This is not the first time Elon Musk has had to address controversial reports related to xAI’s financial endeavors. The earlier Bloomberg article, which claimed that xAI had secured $500 million towards a $1 billion investment, led Musk to label it as “fake news.”
Musk’s voting control stipulation
Apart from addressing capital raise speculations, Musk has also been forthright about his stance on maintaining voting control at Tesla. He expressed discomfort with the idea of developing Tesla into a leading AI and robotics company without retaining approximately 25 percent of voting control.
“I just want to be an effective steward of very powerful technology,”* Musk reiterated during the earnings call. He emphasized his desire for strong influence without seeking complete control over the company.
Stewardship of technology
Elon Musk’s interest in technology stewardship underscores his commitment to responsible development and application of AI. This approach aligns with his vision for xAI, where he seeks to make a substantial impact without compromising ethical considerations.
In the midst of conflicting reports about xAI’s capital raising efforts, Elon Musk remains resolute in his commitment to responsible technology stewardship. As the CEO of xAI and Tesla, his focus appears to be on leveraging powerful technology to make a positive impact on the world while retaining a level of influence that ensures responsible development and utilization.
These recent developments continue to highlight the dynamic nature of the AI industry, where prominent figures like Musk are navigating the complexities of finance, innovation, and ethical considerations in pursuit of groundbreaking advancements in artificial intelligence.
Source: https://www.cryptopolitan.com/elon-musk-denies-capital-raise-for-xai/