Fidelity lifts valuation of Elon Musk’s X and xAI even higher

• Recent filings show that Fidelity once again boosted the valuation of its stakes in X and xAI.
• It was the third month in a row that the valuations of these two Musk companies rose.
• xAI recently raised $6 billion in new funding, with participation from Fidelity.

Fidelity has lifted its valuation of two Elon Musk-controlled tech companies even higher, according to recent filings.

This was the third month in a row that the mutual-fund giant raised the value of its stakes in xAI and the social-media platform X, the filings show.

The Fidelity Blue Chip Growth Fund valued its xAI shares at $79,857,865 at the end of November, a monthly report posted at the end of December said. That’s a 6.4% increase from October, when the fund valued its stake in xAI at $75,062,706, and an increase from September, when the value was $44,152,362.

The fund’s annual report, published at the end of September, said that at the end of July it owned 3,688,585 xAI shares, which were acquired on May 13 for $44,152,000.

However, xAI recently closed a hotly anticipated funding round that Fidelity participated in alongside A16z, BlackRock, Kingdom Holding, Lightspeed, and other investors. xAI confirmed the $6 billion round in a blog post on December 23.

It’s unclear how many shares of xAI the Blue Chip Growth Fund has now, but previous filings showed that the price from September to October rose to $20.35 a pop from $11.96.

Musk’s X deal has recovered some losses

Fidelity’s Blue Chip Growth Fund also increased the value of its shares in X in November to $5,797,734, according to the filings. That’s about a 5% increase from October, when shares were valued at $5,530,358, and a 39% increase from September, when Fidelity valued its stake in X at $4,185,614.

Musk’s 2022 acquisition was panned as one of the most overvalued tech acquisitions in recent memory. But the deal has provided significant benefits for Musk. After using X to support Donald Trump’s reelection, he’s set to wield considerable influence in the incoming Trump administration.

X has also been a lucrative source of training data for xAI, which has used content on the social-media platform to develop powerful AI models that compete with similar offerings from OpenAI, Google and other tech companies.

But the X deal still hasn’t worked out that well for investors, at least not yet.

Despite three straight months of increases, Fidelity still values its X stake far lower than it did in late 2022, when Musk purchased X for $44 billion. Earlier filings indicate Fidelity’s Blue Chip Growth Fund at the time invested $19.66 million.

Representatives for Fidelity declined to comment on Monday. Representatives for X and Musk did not respond to requests for comment.