Fidelity marked up the value of its holdings in Elon Musk’s X (formerly Twitter) by 32.37% in October, according to a report in Axios.
Even with this markup, Fidelity still values the company at 72 percent less than the $44 billion that Musk purchased it for in 2022.
Axios reports that this move is probably connected to xAI—Fidelity is looking to capitalize on the potential growth of artificial intelligence initiatives linked to Musk’s ventures. As the tech landscape evolves, investors are increasingly gauging the future prospects of companies like X, especially in light of their strategic shifts and innovations.
invested in the Musk-founded AI startup’s $6 billion Series B earlier this year, and the firm also marked up its xAI shares by 70 percent in October. xAI’s chatbot Grok was trained on X data and is available to X subscribers; X may also have a significant equity stake in xAI.
The reported markup came before Donald Trump’s presidential election victory in November, with Trump promising that Musk will lead a new Department of Government Efficiency. The election caused a spike in traffic at X, while also seemingly driving millions of users to competing services like Bluesky.
