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Fidelity Increases Valuation of Musk’s X and xAI for Third Consecutive Month
Fidelity has once again raised the estimated worth of its investments in two technology companies led by Elon Musk, according to newly released filings. This marks a third consecutive month that these valuations have seen an upward trend.
Recently, xAI secured $6 billion in fresh funding, with Fidelity taking part in this financial boost. The Fidelity Blue Chip Growth Fund noted its xAI shares’ value rose to $79,857,865 at the end of November, reflecting a 6.39% increase from the $75,062,706 valuation from October and a substantial rise from September’s valuation of $44,152,362.
As reported, the Blue Chip Growth Fund held approximately 3,688,585 xAI shares as of late July, which were acquired on May 13, 2024, for $44,152,000. The fund’s annual report confirms this acquisition and provides insight into the overall performance of its investment portfolio.
In the recent funding round, xAI attracted significant financial commitment from various investors, including a16z, Blackrock, Kingdom Holdings, Lightspeed, and others. This round was highlighted in a blog post released by xAI on December 23. As of now, the exact quantity of xAI shares held by Fidelity’s Blue Chip Growth Fund remains unclear, though valuations suggest a notable price increase from September to October, climbing from $11.96 to $20.35 per share.
Musk’s X Valuation Shows Recovery
In addition to xAI, Fidelity also marked up its valuation of shares in the social media platform X, reporting a figure of $5,797,734 for November. This represented a 5% rise from the prior month and an impressive 39% jump compared to September’s valuation of $4,185,614.
Despite skepticism surrounding Musk’s 2022 acquisition of X, which was widely criticized as an overvalued tech deal, the platform has yielded notable advantages for Musk. His significant presence on X has granted him substantial influence in the political landscape, particularly in relation to the forthcoming Donald Trump administration, having leveraged the platform to support Trump’s reelection campaign.
Moreover, X is proving to be a rich source of training data for xAI, facilitating the development of advanced AI models that compete with similar endeavors from established tech players like OpenAI and Google.
Nevertheless, the financial outlook for investors in X remains cautious. Despite the recent successes and rising valuations, Fidelity’s current valuation of its stake in X is considerably lower than the initial purchase price of $44 billion in late 2022. At the time, the Fidelity Blue Chip Growth Fund had invested $19.66 million in the acquisition.
Representatives from Fidelity have chosen not to comment on these developments, and there has been no response from representatives of X or Musk regarding inquiries made on the subject.
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