Saturday, December 7, 2024

xAI now valued at greater than what Musk paid for Twitter

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 out there 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 yr — as different firms associated to Musk are additionally rising in worth. Tesla, for instance, has had its inventory go up a whopping 35 % because the begin of this month.

That is virtually definitely associated to the latest U.S. elections the place Donald Trump gained by a landslide. Musk and Trump are fairly shut in the mean time: the previous is even going to run a brand new authorities company.

An investor name for xAI revealed that Musk plans to buy a further 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 will likely be the “world’s strongest AI”.

Estimates put X at a valuation of solely $9.6 billion these days which is an virtually 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 options like Threads and Bluesky however there’s additionally been a return of key figures and advertisers to the platform.

How properly X is performing doesn’t actually matter, although. Musk’s web price is untouchable and this latest 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.

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