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Fidelity increased the value of its holdings in Elon Musk’s Company X (formerly Twitter) by 32.37% in October, according to Fidelity. Report in Axios.
Even with this increase, Fidelity still values the company at 72% less than the $44 billion Musk bought it for in 2022.
Axios reports that the move is likely related to xAI — Fidelity invested in Musk’s AI startup’s $6 billion Series B earlier this year, and the company also increased its shares in xAI by 70 percent in October. xAI’s chatbot Grok is trained on X data and is available to X subscribers; X may also have a significant stake in XAI stock.
This increase came before Donald Trump won the presidential election in November, as Trump promised that Musk would lead a new government efficiency department. Elections caused Significant spike in traffic at Xwhile also appearing to push millions of users to competing services like Bluesky.
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