- Fidelity once again boosted the valuation of its stakes in X and xAI, according to recent filings.
- This is the third month in a row that these two Musk companies have seen their valuations rise.
- 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 is the third month in a row that the mutual fund giant raised the value of its stakes in xAI and 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, according to a monthly report posted at the end of December. That’s a 6.39% increase from the previous month, when the fund valued its stake in xAI at $75,062,706, as well as an increase from September, when the value was $44,152,362.
The Blue Chip Growth Fund as of the end of July owned 3,688,585 xAI shares, which were acquired on May 13, 2024 for $44,152,000, according to the fund’s annual report dated the end of July and published at the end of September.
However, xAI recently closed a hotly-anticipated funding round that Fidelity participated in, alongside a16z, Blackrock, Kingdom Holdings, Lightspeed, and other investors. xAI confirmed the $6 billion round in a December 23 blog post.
It is unclear how many shares of xAI the Blue Chip Growth Fund now has, but the price from September to October rose from $11.96 to $20.35 a pop, according to previous filings.
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 a 5% increase from October, when shares were valued at $5,530,358, and a 39% increase compared to September, when Fidelity valued its stake in X at $4,185,614.
Musk’s 2022 acquisition was panned as one of the most over-valued tech acquisition in recent memory. Yet the deal has provided significant benefits for Musk. He wields considerable influence in the upcoming Donald Trump administration after using X to support the former president’s reelection.
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.
However, the X deal has still not 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 in late 2022, when Musk purchased X for $44 billion. Fidelity’s Blue Chip Growth Fund at the time invested $19.66 million, according to earlier filings by the mutual fund giant.
Representatives for Fidelity declined to comment on Monday. Representatives for X and Musk did not respond to requests for comment.
