Startup xAI is valued higher than Twitter at the time of Musk’s purchase

When Ilon Musk bought Twitter for 44 billion dollars in 2022, it was seen as a huge financial mistake. But a few years later, the billionaire’s new startup, xAI, is already valued at more than the social network he renamed to X.

The rise of xAI and its relationship to X

Founded in 2023, xAI is closely tied to X. The startup’s artificial intelligence, Grok AI, is integrated into X and available to premium subscribers. Despite criticism for being less secure and limited than competitors such as ChatGPT or Gemini, Grok AI is attracting attention for its approach to generative AI.

Grok AI.

At recent valuations, the value of xAI has more than doubled in a year, demonstrating strong investor interest. On a recent call with shareholders, Musk revealed plans to buy an additional 100,000 Nvidia chips for model training and announced the release of the third version of Grok in December, saying it will be “the most powerful AI in the world.”

Musk said he plans to buy an additional 100,000 Nvidia chips for model training and announced the release of the third version of Grok in December, saying it will be “the most powerful AI in the world.”

Value of X falls, but Musk raises capital

In the meantime, social network X is now valued at just $9.6 billion, far less than the amount Musk paid. Despite a massive user shift to alternatives like Threads and Bluesky, some advertisers and influencers have begun to return to the platform. However, that doesn’t make up for the overall decline in popularity.

And that’s not enough to make up for the overall decline in popularity.

It’s important to note that Twitter (before the renaming) has rarely turned a profit in its history, so X’s problems can’t be blamed solely on Musk.

Growth of other Musk companies

It’s not just xAI that is showing impressive growth. Tesla, for example, has increased its market value by 35% since the beginning of the month. This has been attributed to the recent US election, which was won by Donald Trump, with whom Musk maintains close ties.

Tesla

Musk also plans to take a position in a new government agency, which could give him additional leverage in the high-tech and artificial intelligence market.

Musk also plans to take a position in a new government agency, which could give him additional leverage in the tech and artificial intelligence market.

Conclusion

Although X is losing value, the success of xAI and the growth of Musk’s other companies prove his ability to manage assets and develop promising technologies. Even if X ceases to exist, Musk remains in the driver’s seat with impressive results in other areas.

And even if X ceases to exist, Musk remains in the driver’s seat with impressive results in other areas.

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