The Controversial AI Startup xAI Raises $500 Million in Funding

XAIs, an AI chatbot developed by Elon Musk's xAI, is the company's main offering. Musk co-founded OpenAI but later left due to disagreements on tech development and profit. Musk recently filed an SEC Form D for xAI, allowing the private sale of up to $1 billion worth of securities. Already, $134 million has been pledged towards the funding target. Despite the controversial nature of the AI platform and the waning interest in AI development, the reputation of the founders makes the sale attractive to investors. Bloomberg reports that xAI is halfway towards its funding goal, with private sources stating that $500 million has been committed. xAI aims to have a valuation between $15 and $20 billion and investors in Musk's other venture, X, will also receive a 25% stake in xAI. Musk disputed Bloomberg's report but did not clarify the specifics. The outcome of the asset sale remains to be seen.