Fidelity increased 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 margin, Fidelity still values the company at 72 percent less than the $44 billion Musk bought it for in 2022.
Axios reports that this move is likely related to xAI: Fidelity invested in the Musk-founded AI startup’s $6 billion Series B earlier this year, and the company also raised its xAI shares by 70 percent. cent in October. Grok, xAI’s chatbot, was trained on X data and is available to X subscribers; X may also have a significant equity stake in xAI.
The reported increase came before Donald Trump’s victory in the November presidential election, when Trump promised that Musk would lead a new Department of Government Efficiency. The election caused an increase in traffic on Xwhile apparently driving millions of users to competing services like Bluesky.