Individuals say that X aka Twitter was a nasty funding as a result of promoting income is down from when Elon Musk bought it at $44 billion. The losses will not be that dangerous whereas promoting is down, Elon was in a position to drastically scale back prices and headcount. X additionally added subscription income. A significant factor that individuals overlook is that X owns 25% of XAI. X content material has enabled higher realtime efficiency for XAI Grok 2.
If XAI hits the deliberate launch of Grok 3 by the tip of this yr and X releases X funds then each corporations needs to be comfortably valued at over $80 billion by the tip of 2024. X would then be capable of elevate funds at a valuation about double what Elon Musk paid.
XAI was valued at $24 billion after elevating $6 billion in Might, 2024. Nevertheless, XAI has launched the Grok 2 AI mannequin that could be very near the efficiency of OpenAI’s high GPT 4o (Omni) and the newest Gemini mannequin from Google.
XAI has purchased 100,000 Nvidia H100 chips and is organising the expanded AI information middle to coach, Grok 3, a GPT 5 class mannequin by the tip of this yr.
OpenAI is valued at $86 billion primarily based upon its final funding by Microsoft. OpenAI’s Income is on monitor for an annualized income of $3.4 billion in 2024. It’s unclear if this estimate continues to be correct with the discharge of the open supply Meta Llama 3 fashions. Microsoft is making an attempt to creating billions and maybe $10 billion be including OpenAI GPT4 to its merchandise.
XAI Grok is integrated into X Premium subscription service. XAI Grok can be built-in into Tesla automobiles and the Teslabot.
X owns 25% of XAI. XAI wanted to coach on the textual content in X. If XAI valuation will increase in direction of OpenAI’s $86 billion with the discharge of Grok 3 then X would personal $21.5 billion of XAI. The earlier XAI valuation in Might for X’s 25% of XAI was $6 billion. The discharge of Grok 2 seemingly makes XAI value no less than $48 billion. X’s shares can be value $12 billion.
X is getting about $120 million per yr in subscription income and has far decrease advert income from earlier than Elon Musk’s buy at a value of $44 billion.
X, the social media platform previously generally known as Twitter, is about to introduce a peer-to-peer cost service in 2024. This service is meant to perform equally to present platforms like PayPal or Venmo. X desires to grow to be a complete every little thing app like China’s WeChat, which mixes messaging, social media, and cost functionalities right into a single platform. X has approvals in place for over 32 states and plans to broaden to all 50. Musk goals to combine these cost companies deeply into the X platform, permitting customers to handle their funds alongside their social interactions. Whereas the precise launch date has not been specified, Musk has indicated that the service might be accessible as early as mid-2024.
Venmo was final valued at $38 billion in 2020 and Paypal trades at $69 billion. X has about 500 million customers whereas Paypal has about 230 million and Venmo has about 90 million. X might launch a Paypal like service and quickly get a $50 billion valuation for a funds and banking enterprise.
SpaceX Starlink can be enabling world satellite tv for pc direct to unmodified cellphone texting, voicecalls and low pace web. Starlink direct to cell mixed with X and X funds would allow fast progress to billions of customers.
X’s 25% share of XAI ensures X will attain a better valuation in 2025 than the $44 billion buy value. X funds and Starlink integration will transfer X in direction of the trillion valuation of Meta.
By the tip of 2024, if Grok 3 is launched and is GPT 5 class, substantial enchancment over Grok 2and Grok 3 is built-in with Tesla automobiles then XAI ought to finish 2024 with about $100 billion in valuation.
If XAI reaches that targets and and if the X funds service is launched then X can be value about $80 billion.
Brian Wang is a Futurist Thought Chief and a well-liked Science blogger with 1 million readers per thirty days. His weblog Nextbigfuture.com is ranked #1 Science Information Weblog. It covers many disruptive know-how and traits together with House, Robotics, Synthetic Intelligence, Medication, Anti-aging Biotechnology, and Nanotechnology.
Identified for figuring out leading edge applied sciences, he’s at the moment a Co-Founding father of a startup and fundraiser for top potential early-stage corporations. He’s the Head of Analysis for Allocations for deep know-how investments and an Angel Investor at House Angels.
A frequent speaker at firms, he has been a TEDx speaker, a Singularity College speaker and visitor at quite a few interviews for radio and podcasts. He’s open to public talking and advising engagements.
