Recent filings indicate that Fidelity has once again increased the valuation of its investments in X and xAI. This marks the second consecutive month in which the valuations of these two companies, both under the control of Elon Musk, have risen. Additionally, xAI has recently secured $6 billion in new funding, with Fidelity among the participants. Fidelity has further elevated its valuation of these two technology firms associated with Musk, as evidenced by the latest filings.
The mutual-fund giant has increased the valuation of its investments in xAI and the social-media platform X for the second consecutive month, as indicated by the filings.
According to a monthly report released at the end of December, the Fidelity Blue Chip Growth Fund assessed its xAI shares at $79,857,865 by the end of November. This represents a 6.4% rise from October, when the fund’s valuation of its xAI stake was $75,062,706, and a significant increase from September, when the value stood at $44,152,362.
The annual report of the fund, released at the conclusion of September, indicated that as of the end of July, it held 3,688,585 shares of xAI, which were purchased on May 13 for a total of $44,152,000.
Recently, xAI successfully completed a highly anticipated funding round, with Fidelity participating alongside notable investors such as A16z, BlackRock, Kingdom Holding, and Lightspeed. The company announced the completion of the $6 billion funding round in a blog post dated December 23.
It remains uncertain how many xAI shares the Blue Chip Growth Fund currently possesses; however, prior filings revealed that the share price increased from $11.96 in September to $20.35 in October.
Musk’s acquisition of X has regained a portion of its previous losses. According to recent filings, Fidelity’s Blue Chip Growth Fund raised the valuation of its shares in X to $5,797,734 in November. This represents an approximate 5% increase from October, when the shares were valued at $5,530,358, and a significant 39% increase from September, when Fidelity assessed its investment in X at $4,185,614.
Musk’s acquisition in 2022 was criticized as one of the most overpriced technology purchases in recent history. However, the transaction has yielded substantial advantages for Musk. By leveraging X to bolster Donald Trump’s reelection campaign, he is poised to exert significant influence within the forthcoming Trump administration.
Additionally, X has proven to be a profitable reservoir of training data for xAI, which has utilized content from the social media platform to create advanced AI models that rival those from OpenAI, Google, and other technology firms.
The X deal has not yet proven to be particularly beneficial for investors.
Although there have been two consecutive months of growth, Fidelity continues to assess its stake in X at a significantly lower value compared to late 2022, when Musk acquired X for $44 billion. Previous filings reveal that Fidelity’s Blue Chip Growth Fund invested $19.66 million at that time.
Fidelity representatives chose not to provide comments on Monday, and there was no response from representatives for X or Musk regarding requests for comment.
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