Elon Musk's AI startup company, xAI, has reportedly secured $500 million from investor commitments, inching toward the $1 billion funding goal.

However, the CEO immediately responded to Bloomberg's report saying the investment report was "simply not accurate." 

Read Also: Elon Musk Introduces xAI's Chatbot 'Grok'

xAI Reportedly Discussing Valuation of up to $20 Billion 

According to the report, the company is currently in talks to finalize the startup's valuation which could range between $15 billion to $20 billion. 

Last November, Musk announced that equity investors in X will own 25% of xAI. This policy encouraged investors to invest in the AI startup at least 25% of the amount of their investment in X. 

Over two months after xAI's chatbot, Grok, was launched, Musk and the investors are expected to finalize the terms within the next few weeks, according to the people with knowledge of the situation. 

xAI's Position in the AI Industry 

Last year in July, Musk introduced xAI as an alternative AI tool for big tech AI models. "The goal of xAI is to understand the true nature of the universe," the company website stated. 

The Musk-led AI company is comprised of people from big tech companies like DeepMind, OpenAI, Google Research, Microsoft Research, Tesla, and the University of Toronto.

Before the year ended, Musk opened exclusive access to the Grok AI chatbot to X Premium Plus Subscribers. The chatbot has been noted as more conversational and can be a bit rebellious compared to other chatbots like ChatGPT or Google Bard. 

As of writing, Musk has yet to disclose the progress of the company's funds. As per the filing on the SEC, the AI startup aims to raise $1 billion in equity investments. 

Related Article: Elon Musk Aims to Raise $1 Billion in Investments for xAI