Fidelity Increases Valuation of Elon Musk’s X and xAI Holdings

The valuation boost for X and xAI reflects their interconnected growth, despite X still being valued far below its 2022 purchase price.

Fidelity raised its valuation of Elon Musk's X by 32.37% in October, the largest monthly increase since Musk acquired the platform in 2022.
Despite the increase, X is still valued at 72% less than the $44 billion Musk paid for it, with its current estimated worth at $12.5 billion.
The valuation hike is attributed to xAI, Musk's artificial intelligence startup, which uses X data to train its chatbot, Grok, and has seen its own valuation increase by 70%.
Fidelity's investment in xAI's $6 billion Series B funding round earlier this year and reports of X holding equity in xAI suggest a close financial relationship between the two companies.
Donald Trump's presidential election win in November and Musk's role as a key ally and adviser to the incoming administration could further impact the valuations of Musk's ventures.