When eccentric — and really controversial — billionaire Elon Musk purchased Twitter in 2022 for $44 billion everybody thought it was an enormous monetary mistake. And whereas Twitter (
now known as X) has been devaluing ever since for a number of causes, the
newest analysis of Musk’s xAI exhibits that he’s just about made again what he spent.Startup xAI, based in 2023, is closely interlinked with X. Its Grok AI is on the market to premium customers on X and is each praised and criticized for its lax of restrictions and safeguards discovered on competing AI fashions like ChatGPT and Gemini.
And it’s not simply xAI that has seen a sudden bump in its valuation — greater than double what it was earlier this 12 months — as different corporations associated to Musk are additionally rising in worth. Tesla, for instance, has had its inventory go up a whopping 35 % for the reason that begin of this month.
That is nearly definitely associated to the current U.S. elections the place Donald Trump received by a landslide. Musk and Trump are fairly shut in the meanwhile: the previous is even going to run a brand new authorities company.
Picture credit score — PhoneArena
An investor name for xAI revealed that Musk plans to buy an extra 100,000 chips from Nvidia for additional coaching of the startup’s AI fashions. He has additionally mentioned that xAI will unveil the third model of Grok in December and promised that it is going to be the “world’s strongest AI”.Estimates put X at a valuation of solely $9.6 billion these days which is an nearly unbelievable lower from what Musk paid for it. How a lot of that is true is a bit questionable. It’s no secret that there was an exodus of customers to alternate options like Threads and Bluesky however there’s additionally been a return of key figures and advertisers to the platform.
How nicely X is performing doesn’t actually matter, although. Musk’s internet value is untouchable and this current analysis of xAI solely additional exhibits the intense financial ranges these platforms function on.
If X does shut down sooner or later it wouldn’t simply be due to Musk’s acquisition: Twitter barely ever turned a revenue all through its lifetime.
