Fidelity recently boosted the value of its stake in Elon Musk’s company X (formerly Twitter) by 32.37% in October, according to Axios. Even with the lift, Fidelity’s valuation still indicates that the firm is worth 72% less than the $44 billion Musk paid for it in 2022.
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The report connects this change with Musk’s AI startup, xAI. Fidelity had taken part in xAI’s $6 billion Series B funding earlier this year and raised its valuation of xAI shares by 70% in October. Grok, a chatbot developed using X data, is accessible to its subscribers. X also reportedly owns a considerable equity share in xAI.
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The value increase for X came just ahead of Donald Trump’s presidential election victory in November. Trump’s win sent a flood of traffic to X, spurred by his declaration that Musk would head a new Department of Government Efficiency. Meanwhile, rival platforms like Bluesky saw millions of new users exploring alternatives.
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Fidelity updated its valuation to reflect an evolving strategy behind Musk’s ventures, showing potential for growth between X and xAI.
