Several backers of Elon Musk’s $44 billion acquisition of X are now set to receive a windfall from their investments in xAI.

Financial giant Fidelity bumped up the valuation of two Elon Musk-owned companies, social media platform X and AI startup xAI in October.

xAI is looking to compete in an increasingly crowded AI space dominated by companies including OpenAI and Anthropic alongside Big Tech companies such as Google and Microsoft. Apple, the world's largest tech company, has also entered the AI space with its gradual launch of Apple Intelligence on some of its devices.

In the world of generative artificial intelligence ( AI ), the scrap between Elon Musk and Sam Altman is in the same league. It is both silly and captivating. Silly because they insult each other, try to discredit each other’s chatbots and fight over who meant what almost a decade ago when they co-founded Open AI.

Fidelity has raised the estimated value of its stake in Elon Musk’s X (formerly Twitter) by 32.37% in October, according to an Axios report. Despite the boost, the social media platform is still valued at nearly 72% less than the $44 billion Musk paid to acquire it in 2022.

Fidelity marked up the value of its holdings in Elon Musk's X by 32.37% in October, Axios reported Sunday, possibly boosted by the social media's stake in xAI.  Despite the markup, Fidelity still values the platform formerly known as Twitter at a 72% discount to the $44 billion Musk purchased it for in 2022.