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

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

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.

Elon Musk took Twitter private for $44 billion. Fidelity raised the carrying valuation for the social media company in October after many months of markdowns.

Joining Google, Microsoft, Meta, OpenAI, and Anthropic amid a booming AI industry, xAI is part of a cohort developing consumer-facing AI.

Even though Fidelity marked up its holdings in X by an impressive 32.37 per cent, it still considers X to be worth substantially less than the $44 billion Musk initially paid for it, valuing the platf

X is worth 72% less than the $44 billion owner Elon Musk paid for the app formerly known as Twitter, despite that Fidelity had recently marked up the value of its shares by 32.37%, according to a valuation from Fidelity.