According to a report in Axios, Fidelity increased the value of its holdings in Elon Musk’s X (formerly Twitter) by 32.37% in October.
Despite this increase, Fidelity still values the company at 72 percent less than the $44 billion that Musk purchased it for in 2022.
Axios suggests that this change may be related to xAI. Fidelity invested in xAI, a startup founded by Musk, during its $6 billion Series B funding round earlier in the year. They also raised the value of their xAI shares by 70 percent in October. xAI’s chatbot Grok was trained on X data and is accessible to X subscribers. Additionally, X likely holds a significant ownership stake in xAI.
The reported increase in value occurred before Donald Trump’s win in the presidential election in November. Trump proposed that Musk would lead a new Department of Government Efficiency. Following the election, there was a surge in traffic at X, as well as a notable increase in users switching to alternative platforms such as Bluesky.
