Elon Musk’s xAI is raising new funding at a valuation of $40 billion, WSJ reported. Meanwhile, social media network X is currently valued at $9.4 billion, according to Fidelity’s filing. Fidelity’s funds have since written down the value of X stock by nearly 79%. 2022.
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A new round of funding underway for xAI could value Elon Musk’s startup more than four times the current value of his social media network X, according to a recent Fidelity filing. There is.
The AI startup is reportedly in talks to raise funding at a valuation of $40 billion, according to the Wall Street Journal. xAI, founded by Musk in 2023 and touted as an alternative to OpenAI’s ChatGPT, previously raised $6 billion in Series B from a16z and Sequoia Capital at a post-money valuation of $24 billion.
Talks with investors are still in the early stages, people familiar with the matter told The Wall Street Journal. However, Fidelity estimates that if this funding round passes at a valuation of $40 billion, xAI will be worth more than four times that of It was stable.
Fidelity, which invests in emerging companies through multiple mutual funds including the Blue Chip Growth Fund, valued X stock at $4,185,614 at the end of September, according to a monthly report released at the end of October. . The fund held 196,600 Class A shares at the end of July, according to its August annual report.
This price of $21.29 a pop is unchanged from the Blue Chip Growth Fund’s August estimate of the value of X. However, compared to two years ago, it has decreased by 78.7%. Musk acquired X in October 2022 for $44 billion. Fidelity Funds invested $19.66 million at the time, according to filings.
Assuming that the investment was made at a valuation of X of $44 billion, the Fund currently values X at approximately $9.4 billion.
Fidelity’s Blue Chip Growth Fund also invested in xAI, valuing its investment at $44,152,362, according to an October filing. The fund held 3,688,585 shares at the end of July, according to its August annual report. The price is $11.96 per share.
