Tesla CEO Elon Musk shut down rumors that his artificial intelligence company xAI has received additional funding according to a report by a media company that quoted sources familiar with the matter, with a single word. He gave the one-word response on his social media platform X. Earlier as well, another agency had reported funding of xAI and the company debunked that report as well. 

Musk posted “False” on his social media site X, after CNBC reported that $5 billion in funds had been added to a $10 billion round and XAI had been valued at $200 billion. He did not clarify if the entire report was wrong, or if parts of the report were wrong.

xAI is investing in graphic processing units that are required for large language modules, according to the CNBC report. 

All artificial intelligence companies require data centre capacity to train advance models. xAI has also bought property in Memphis to expand its infrastructure and it houses large data centres. 

Reports by local researchers say that the data centres have used natural gas burning turbines to power them, and that emissions from these turbines are contributing to air quality problems in the area.

The Memphis land is expected to be used to build a supercomputer that has been called Colossus. XAI has also bought tens of millions of dollars of of battery energy storage systems from Tesla. This energy will be used at the data centres.

Reuters had also reported on the matter of funding. The news agency received the following reply — “Legacy Media Lies.” This appears to be an automated reply.

Artificial intelligence company xAI was founded by Elon Musk in July 2023. It has developed the artificial intelligence model called Grok. It has also recently developed a platform called Grokipedia as a rival to popular platform, Wikipedia. It has acquired the platform X.