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X.AI Corp Stock: How To Buy It?

Posted on Oct 4, 2024
X.AI Corp Stock: How To Buy It?

X.AI Corp. (“xAI”) is currently a private company, meaning its stock is not publicly available for investment, unlike companies such as Tesla or Microsoft. However, as xAI was founded by tech titan Elon Musk, there are still ways for investors to potentially gain exposure to this innovative AI venture.

Founded in March 2023, xAI is an American startup that aims to push the boundaries of artificial intelligence (AI) technology. The company’s mission, according to Musk, is nothing short of ambitious: "to understand the true nature of the universe". Despite its high-profile founder, detailed information about xAI’s operations and strategic direction remains scarce, as the company has kept a low profile since its inception.

In this article, we will explore the possibility of investing in xAI, look at the company's leadership and current developments, and examine how investors might indirectly gain exposure to the growing influence of this AI venture.

Key Insights:

  • Founded in March 2023 by Elon Musk, xAI’s mission focuses on advancing AI technology with the ambitious goal of unraveling the mysteries of the universe.
  • xAI is not publicly traded, and as of October 2024, there are no immediate plans to change that. Musk’s previous ventures suggest this may remain the case for the foreseeable future.
  • No IPO in Sight: While there is speculation about a potential xAI IPO, there has been no official announcement, and Musk is known for delaying or foregoing IPOs in his other companies, preferring private control.
  • Recent Fundraising Success: In May 2024, xAI successfully secured $6 billion in funding, giving the company a valuation of $24 billion. Investors included major venture capital firms such as Sequoia Capital and Andreessen Horowitz, underscoring the confidence in Musk’s vision for AI.
  • Indirect Investment Options: While direct investment in xAI is off the table for now, there are alternative strategies. Investors can consider backing other companies within Musk’s X Corp. umbrella or investing in AI-focused exchange-traded funds (ETFs) that provide broader exposure to the sector’s growth.

About X.AI Corp. (xAI)

Founded by Elon Musk in March 2023, X.AI Corp. (xAI) entered the spotlight on July 12, 2023—a date Musk deliberately chose for its significance in popular culture. The sum of the digits in this date (7 + 12 + 23 = 42) is a nod to the famous answer to "life, the universe, and everything" from Douglas Adams' The Hitchhiker's Guide to the Galaxy. This playful yet intentional detail reflects the deeper mission of xAI: to develop artificial intelligence that could help uncover the mysteries of the universe.

In July 2023, Musk hosted a Twitter Space where he unveiled more about xAI’s purpose and the impressive team behind it. Alongside Musk, the xAI team includes renowned machine learning expert Manuel Kroiss, former DeepMind and OpenAI researcher Igor Babuschkin, and mathematician and AI specialist Yuhuai (Tony) Wu. Their collective experience spans some of the most cutting-edge AI research institutions in the world.

“The goal of xAI is to create a beneficial artificial general intelligence (AGI) aimed at understanding the universe”, Musk explained during the event. He also reiterated his concerns about the dangers of AGI, which he has frequently described as a potential existential risk to humanity. According to Musk, xAI seeks to build an AGI system that is "maximum curious" and "truth curious", working to close the gap between perceived truths and actual reality—one of the many ways Musk believes AGI could help prevent the negative outcomes often associated with this advanced technology.

Despite being a separate entity from Musk’s other ventures, such as Tesla and X Corp. (formerly Twitter), xAI is expected to collaborate closely with these companies to further its mission. Interestingly, in November 2023, Musk revealed that X Corp. shareholders would hold a 25% stake in xAI, blurring the lines between his enterprises and suggesting a shared ecosystem of technology and innovation.

Rapid Growth and Funding Milestones
In early 2024, CNBC reported that xAI was seeking additional funding at a valuation between $15 billion and $20 billion, with the company aiming to raise up to $1 billion in fresh capital. This marked a significant step in its growth, but the momentum didn’t stop there.

By May 2024, xAI had successfully raised an astounding $6 billion in its Series B funding round, catapulting the company’s valuation to $24 billion. The round attracted high-profile investors, including Sequoia Capital, Andreessen Horowitz (a16z), and Saudi Prince Alwaleed Bin Talal, highlighting the widespread confidence in Musk’s latest endeavor. In a statement following the raise, xAI disclosed that the funds would be used to launch the company's first products, build advanced AI infrastructure, and accelerate research and development of future technologies.

This enormous influx of capital underscores the strong belief in xAI's potential to lead the next wave of AI advancements. The company is well-positioned to become a significant player in the AI space, especially given the caliber of its team and the strategic collaboration across Musk's other ventures.

Will There Be an xAI IPO?

As of now, there is no official date or concrete information regarding an initial public offering (IPO) for X.AI Corp. (xAI). Speculation continues to swirl around the potential for xAI to go public, but judging by Elon Musk’s history with his other ventures, it may not happen in the near future—if at all.

Elon Musk has a track record of keeping his companies private for as long as possible. Of the companies he has founded or co-founded—including Tesla, SpaceX, Neuralink, The Boring Company, and PayPal—only Tesla and PayPal have gone public. Notably, PayPal's IPO occurred after Musk had already left the company. SpaceX, which remains privately held and is one of the most valuable private companies globally, serves as an example of Musk's preference for maintaining control over his ventures outside the scrutiny and pressure of public markets.

Given Musk’s previous comments about the advantages of staying private—such as avoiding the short-termism often demanded by shareholders—it seems likely that xAI could follow a similar path to SpaceX and Neuralink. Both of these companies have benefited from remaining private, allowing them to focus on long-term innovation without the distractions of quarterly earnings reports and stock market volatility.

However, it’s important to note that the unpredictable nature of Musk's business decisions means that the door isn't entirely closed on an xAI IPO. If going public aligns with the company’s long-term goals, or if significant capital is required to accelerate its growth, an IPO could eventually be on the table. Investors interested in xAI should continue to monitor any developments closely, as Musk’s ventures have a history of taking unexpected turns.

For now, xAI remains privately funded, recently raising $6 billion in a successful round of financing that valued the company at $24 billion. This impressive capital raise, alongside backing from notable investors like Sequoia Capital and Andreessen Horowitz, suggests that xAI has the resources it needs to continue advancing its mission without immediate pressure to enter public markets.

How to Buy X.AI Corp Stock?

Currently, there is no direct way to purchase stock in X.AI Corp. (xAI), as the company remains a privately held startup and is not listed on any public stock exchange. However, there are alternative strategies to gain exposure to xAI’s potential without needing to buy its stock directly.

Invest in Tesla Stock

At this point, one of the most practical ways to gain indirect exposure to xAI is by investing in Tesla. Elon Musk has confirmed that xAI will collaborate closely with Tesla, particularly in enhancing Tesla's self-driving technology. As a result, progress in xAI could potentially boost Tesla’s technological edge, thereby impacting its stock price.

Tesla's stock performance has been notable in recent years. From January 2023 to January 2024, Tesla shares saw a significant increase, rising from a low of $113 to $209—a growth of 85%. This surge far outpaced the broader market, with Tesla outperforming the S&P 500, which gained 21.5% during the same period.

Tesla’s growth has been driven by its dominant position in the electric vehicle (EV) market, maintaining over 60% market share in the U.S. The company also increased vehicle deliveries from 241,300 units in Q4 2021 to 435,050 in Q3 2023. Additionally, Tesla’s revenue grew by 8.8% in its latest earnings quarter, reinforcing its strong market position.

However, there are challenges. Rising competition from other EV manufacturers has put pressure on Tesla’s profits, leading to a 43.7% decline in net income in Q3 2023. Over the past six months, Tesla's stock dropped from $246 to around $215, a 12.6% decrease. This drop has pushed Tesla out of the top 10 largest companies globally by market capitalization, now ranking 11th with a market cap of $690 billion.

Invest in AI ETFs

For those seeking broader exposure to the artificial intelligence sector, investing in AI-focused exchange-traded funds (ETFs) could be a smart option. These funds provide diversified exposure to companies advancing in AI, which may indirectly benefit from xAI’s progress.

Several notable AI ETFs have performed well in recent years. For instance, the Artificial Intelligence & Technology ETF experienced a 30.52% increase in one year, while other AI ETFs such as the Global X Robotics & Artificial Intelligence ETF, iShares Robotics and Artificial Intelligence Multisector ETF, and WisdomTree Artificial Intelligence and Innovation Fund have seen gains ranging from 9.9% to 11.6%.

Monitor Pre-IPO Platforms for X.AI Stock

Another way to potentially gain access to xAI stock is by monitoring pre-IPO platforms. These platforms, such as Linqto, Forge, EquityZen, and Hiive, allow users to buy shares from private companies before they go public, often from employees looking to sell their equity.

However, opportunities to purchase xAI shares on these platforms may be limited due to the company's early stage. Liquidity is typically low for shares of private companies, and prices can vary significantly. Nonetheless, if you're determined to invest in xAI, keeping an eye on these platforms could eventually present opportunities to acquire shares before a potential IPO.

Conclusion

Founded in early 2023, X.AI Corp. (xAI) is a young and rapidly evolving company still in its early development phase. Led by Elon Musk and supported by a team of top-tier AI and programming experts, xAI aims to build a revolutionary artificial general intelligence (AGI) system. The company’s ambitious mission is to unravel the mysteries of the universe, exploring fundamental questions about life, existence, and the cosmos.

At this stage, xAI remains privately held, meaning there is no direct way to invest in the company. However, you can gain indirect exposure to xAI's potential through other avenues. Investing in Tesla, a company expected to collaborate closely with xAI, provides one such option. Additionally, AI-focused exchange-traded funds (ETFs) offer a broader way to capitalize on the rapid advancements in artificial intelligence, an industry in which xAI is poised to play a significant role.

As xAI continues to grow and develop its groundbreaking technology, investors should keep a close eye on future opportunities that may arise, whether through new collaborations, funding rounds, or even a potential IPO down the road.

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Any questions?

No, X.AI Corp. is not publicly traded. It remains a privately held startup, so its shares are not available on any stock exchange.

Since X.AI Corp. is not listed on the stock market, there is no publicly available stock price for the company at this time.

There is currently no official stock symbol for X.AI Corp. However, if the company eventually goes public, it’s possible that "XAI" could be a fitting ticker symbol for the New York Stock Exchange (NYSE) or NASDAQ, though this remains speculative for now.

X.AI Corp. was founded by Elon Musk, the renowned billionaire behind Tesla, SpaceX, Neuralink, and several other groundbreaking companies. While Musk is the driving force behind xAI, the company is supported by a team of AI and machine learning experts. As of now, Musk and early investors hold ownership of xAI. Given Musk's track record of creating industry-disrupting ventures, there is high anticipation surrounding the potential success of xAI. However, whether it will achieve the

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