“Investors who funded Elon Musk’s $44 billion acquisition of the Twitter platform are reaping significant profits thanks to the rise in value of his company xAI.”, — write: epravda.com.ua
Investors who funded Elon Musk’s $44 billion acquisition of the Twitter platform are reaping significant profits thanks to the rise in value of his company xAI. This is reported by the Financial Times. Musk gave investors a 25% stake in xAI, which helped offset losses from the decline in the value of X (formerly Twitter). While the social network has struggled with advertisers leaving the platform over concerns about content moderation, xAI is gaining traction, allowing investors hit by losses on X to recoup their losses.Advertisement: xAI closes new $5 billion funding round, doubling its valuation to $50 billion in just six months. This benefits Musk’s investors, which include Fidelity, Larry Ellison, Prince Alwaleed bin Talal, Jack Dorsey, and venture capital firms Sequoia Capital and Andreessen Horowitz.Advertisement: They are benefiting from xAI’s rapid growth, made possible by significant investments and contributions in two businesses of a billionaire. Not only has Musk raised investment for X (Twitter) through the sale of Tesla shares, Musk has also reportedly raised funding for xAI, which is growing and generating revenue. In a series of financing rounds, Twitter investors had the opportunity to invest in xAI, which contributed to its growth. However, these deals create difficulties in managing conflicts of interest, since Musk runs several companies at the same time, and it is difficult to balance the interests of all participants. We will remind: Elon Musk’s fortune exceeded $300 billion for the first time in more than two years amid the rise of Tesla shares after Trump’s victory in the US presidential elections. President-elect Donald Trump announced Tuesday that billionaire Elon Musk and former Republican presidential candidate, pro-Russian businessman Vivek Ramaswamy will lead the new “Department of Government Effectiveness” (DOGE), which, despite its name, is not a government agency.
