Investors in Elon Musk's $44 billion Twitter acquisition are poised to recover significant losses through their stakes in his artificial intelligence company, xAI, according to Financial Times sources on Wednesday.
The media said xAI is nearing a $5 billion fundraising round that would double its valuation to $50 billion in six months and that Musk has granted 25% of xAI's shares to those who supported his Twitter deal, enabling them to benefit from the startup's soaring value. Those who benefited will include key recipients like Fidelity, Larry Ellison, Saudi Prince Alwaleed bin Talal, Jack Dorsey, Sequoia Capital, and Andreessen Horowitz.
For many of these backers, the success of xAI marks a turnaround after enduring unrealized losses from Twitter's controversial takeover.
