Fidelity Raises Valuation of Elon Musk’s X and xAI

Fidelity has once again increased the valuation of its stakes in X and xAI, as per recent filings. This marks the third consecutive month of valuation hikes for these two companies under Elon Musk's control.

Valuation Details

According to reports, Fidelity's Blue Chip Growth Fund valued its xAI shares at $79,857,865 by the end of November, reflecting a 6.39% increase from the previous month. This surge continues the upward trend from September when the value stood at $44,152,362.

The fund initially acquired 3,688,585 xAI shares on May 13, 2024, for $44,152,000, as indicated in the annual report from the end of July. Additionally, the price per xAI share rose from $11.96 in September to $20.35 in October.

Funding Round and Recent Developments

xAI recently concluded a $6 billion funding round with the participation of notable firms like a16z, Blackrock, Kingdom Holdings, and Lightspeed. This funding round was confirmed by xAI in a blog post on December 23.

On the X front, Fidelity's Blue Chip Growth Fund also elevated the value of its X shares to $5,797,734 in November, showcasing a 5% increase from October. Despite initial skepticism surrounding Musk's 2022 acquisition of X, the deal has proven beneficial for Musk, providing him with significant leverage in the upcoming political landscape.

X has not only served as a platform for Musk's influence but has also contributed valuable training data to xAI. The latter has utilized content from X to develop cutting-edge AI models that rival those of major tech players like OpenAI and Google.

Investor Outlook

Despite the recent valuation hikes, Fidelity still values its stake in X lower than the acquisition price in late 2022 when Musk bought X for $44 billion. The Blue Chip Growth Fund initially invested $19.66 million during the acquisition phase.

While Fidelity refrained from commenting on the matter, representatives for X and Musk have not responded to requests for comment.

Original article source: Business Insider

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By: sstokes@insider.com (Samantha Stokes)
Title: Fidelity Raises Valuation of Elon Musk’s X and xAI
Sourced From: www.businessinsider.com/fidelity-boosts-valuation-elon-musk-x-xai-2024-12
Published Date: Mon, 30 Dec 2024 21:02:36 +0000