Asset management firm Fidelity slashed the estimated worth of its stake in business messaging platform Gupshup by another 7.7% last month, lowering the value of its holding in the SaaS startup by a total of more than 65% since its investment in mid-2021. One of the funds operated by the U.S. asset manager valued its […]
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Fidelity has lifted its valuation of two Elon Musk-controlled tech companies even higher, according to recent filings.
This was the third month in a row that the mutual-fund giant raised the value of its stakes in xAI and the 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, a monthly report posted at the end of December said. That's a 6.4% increase from October, when the fund valued its stake in xAI at $75,062,706, and an increase from September, when the value was $44,152,362.
The fund's annual report, published at the end of September, said that at the end of July it owned 3,688,585 xAI shares, which were acquired on May 13 for $44,152,000.
However, xAI recently closed a hotly anticipated funding round that Fidelity participated in alongside A16z, BlackRock, Kingdom Holding, Lightspeed, and other investors. xAI confirmed the $6 billion round in a blog post on December 23.
It's unclear how many shares of xAI the Blue Chip Growth Fund has now, but previous filings showed that the price from September to October rose to $20.35 a pop from $11.96.
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 about a 5% increase from October, when shares were valued at $5,530,358, and a 39% increase from September, when Fidelity valued its stake in X at $4,185,614.
Musk's 2022 acquisition was panned as one of the most overvalued tech acquisitions in recent memory. But the deal has provided significant benefits for Musk. After using X to support Donald Trump's reelection, he's set to wield considerable influence in the incoming Trump administration.
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.
But the X deal still hasn't 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 it did in late 2022, when Musk purchased X for $44 billion. Earlier filings indicate Fidelity's Blue Chip Growth Fund at the time invested $19.66 million.
Representatives for Fidelity declined to comment on Monday. Representatives for X and Musk did not respond to requests for comment.
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Fidelity increased the value of its shares in two Elon Musk-owned companies in October, social media platform X and startup xAI, according to filings.
The financial giant, which invests in startups and large corporations through multiple mutual funds, has stakes in both companies via its Blue Chip Growth Fund.
That fund valued its xAI shares at $75,062,706 at the end of October, according to filings released publicly at the end of November. The fund had 3,688,585 shares at the end of July, according to an annual filing from August, which means the shares are currently valued at $20.35 each.
Last month, the fund valued its xAI shares at $44,152,362, or $11.96 each. That's a 70% jump from September to October.
Representatives for Fidelity did not immediately respond to a request for comment.
Fidelity's October markup for OpenAI rival, xAI, foreshadowed what turned out to be a huge month for Musk, who was tapped as President-elect Donald Trump's government efficiency boss in early November.
Later in the month, xAI closed a hotly anticipated $5 billion funding round reportedly from Qatar's sovereign-wealth fund, Qatar Investment Authority, as well as VC firms Sequoia Capital and Andreessen Horowitz, the Wall Street Journal reported.
xAI is now valued at $50 billion, which is more than double the $24 billion valuation it received earlier this year after its $6 billion Series B funding round.
The AI startup has made up significant ground on its rivals by using X as a source of third-party data, one of the main sources for training large language models.
Fidelity also bumped up the value of its X shares to $5,530,358 in October, according to the November filing. The bump followed months of Fidelity lowering the value of its shares of X.
The fund had 196,600 Class A shares of X at the end of July, according to an annual filing from August. That means the fund is currently valuing its shares of X at $28.13 a piece, which is a 32.4% jump from the previous month when the fund valued its X shares at $4,185,614, or $21.29 a pop.
Previously, Fidelity's value of X shares had dropped more than 80% compared to two years ago, when Musk, in October 2022, purchased X for $44 billion. While critics initially said he 'overpaid' for the social media platform, it is starting to bear fruit — including supporting his AI ambitions and winning favor with Trump.
At the time of the purchase, the Blue Chip Growth Fund invested $19.66 million, according to filings. Assuming the investment was made at X's $44 billion valuation, the fund last month estimated X's total value to be around $9.4 billion. For October, X's value is now estimated to be around $12.5 billion.
Fidelity's value in OpenAI, meanwhile, remained mostly unchanged from September to October. At least five Fidelity funds have a stake in the AI juggernaut, and Fidelity participated in OpenAI's $6.6 billion funding round to the tune of at least $100 million.
Four of the five funds held the same value for its OpenAI shares, and the firm's Stock Selector All Cap Fund increased the value of its investment slightly to $584,180, up from $580,570.
Representatives for OpenAI did not immediately respond to a request for comment.
