When eccentric — and very controversial — billionaire Elon Musk bought Twitter in 2022 for $44 billion everyone thought it was a huge financial mistake. And while Twitter (now called X) has been devaluing ever since for multiple reasons, the latest evaluation of Musk’s xAI shows that he’s pretty much made back what he spent.
Startup xAI, founded in 2023, is heavily interlinked with X. Its Grok AI is available to premium users on X and is both praised and criticized for its lax of restrictions and safeguards found on competing AI models like ChatGPT and Gemini.
And it’s not just xAI that has seen a sudden bump in its valuation — more than double what it was earlier this year — as other companies related to Musk are also increasing in value. Tesla, for example, has had its stock go up a whopping 35 percent since the start of this month.
This is almost certainly related to the recent U.S. elections where Donald Trump won by a landslide. Musk and Trump are quite close at the moment: the former is even going to run a new government agency.
Image credit — PhoneArena
An investor call for xAI revealed that Musk plans to purchase an additional 100,000 chips from Nvidia for further training of the startup’s AI models. He has also said that xAI will unveil the third version of Grok in December and promised that it will be the “world’s most powerful AI”.
Estimates put X at a valuation of only $9.6 billion nowadays which is an almost unbelievable decrease from what Musk paid for it. How much of this is true is a bit questionable. It’s no secret that there has been an exodus of users to alternatives like Threads and Bluesky but there’s also been a return of key figures and advertisers to the platform.
How well X is performing doesn’t really matter, though. Musk’s net worth is untouchable and this recent evaluation of xAI only further shows the extreme monetary levels these platforms operate on.
If X does shut down in the future it wouldn’t just be because of Musk’s acquisition: Twitter barely ever turned a profit throughout its lifetime.
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Abdullah is an ardent believer in the future of VR, and can't wait to see what more it brings to the table as technology improves. He enjoys covering new software releases in the XR industry, as well as major news about hardware and companies focused on VR.
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