How to Buy X.AI Corp Stock? [Symbol & Price 2024]
Find whether you can buy X.AI Corp. stock, its stock symbol and price, and different ways of indirectly investing in xAI.
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X.AI Corp. (“xAI”) is not a publicly traded company, which means that you cannot invest in the company like you would in Tesla or Microsoft, for example. However, with xAI being founded by tech billionaire Elon Musk, there are other potential opportunities that you can explore to gain exposure to xAI.
Founded in March 2023, xAI is an American startup focused on artificial intelligence (AI) technology. The mission statement of Elon Musk's AI is “to understand the true nature of the universe.” It is worth pointing out that there is currently very little information available regarding xAI and its business operations.
In this article, we are going to answer how to buy X.AI Corp. stock, look into the company’s team and currently available information, and examine ways in which you can gain exposure to the company.
Key takeaways:
- Founded in March 2023 by tech mogul Elon Musk, xAI aims to delve into AI technology with a lofty mission to "understand the universe."
- X.AI Corp. (xAI) isn't publicly traded, making direct investment impossible as of June 2024; judging from Musk's other ventures, that's likely to remain unchanged for the foreseeable future.
- While speculation exists, there's no concrete information regarding an xAI IPO, which is consistent with Musk's historical approach to his other ventures.
- In the latest funding round in May 2024, xAI raised a whopping $6 billion in fresh capital at a $24 billion valuation; investors included prominent VCs like Sequoia Capital and Andreessen Horowitz.
- As xAI isn't publicly traded, investing indirectly remains an option. You can consider investing in other companies under the X Corp. umbrella or investing in AI ETFs to gain exposure to the broader industry.
About X.AI Corp. (xAI)
As mentioned in the opening paragraphs, xAI was founded by Tesla founder and CEO Elon Musk in March 2023. The public announcement of the company’s founding came on July 12, 2023 – a date that was chosen due to the sum of its digits (7 + 12 + 23 = 42) amounting to 42, a number that was “the answer to the question of life, the universe, and everything” in Douglas Adams’ sci-fi classic The Hitchhiker's Guide to the Galaxy.
Great summary https://t.co/s2QE9zuzp4 — xAI (@xai) July 15, 2023
In July 2023, Musk held a Twitter Space in which he discussed xAI, its goals, and its team. In addition to Musk himself, the team working at xAI features some impressive individuals, including machine learning expert Manuel Kroiss, former DeepMind and OpenAI employee Igor Babuschkin, and mathematician and AI specialist Yuhuai (Tony) Wu.
“The goal with xAI is to build a good AGI (artificial general intelligence) with the purpose of understanding the universe.” – Elon Musk, xAI founder
During the Twitter Space, Musk also touched upon the dangers of building an AGI system, which he has highlighted numerous times in recent years as a potentially existential threat to humanity. “The safest way is to build an AGI that is ‘maximum curious’ and ‘truth curious,’ and to try and minimize the error between what you think is true and what is actually true,” stated Musk.
According to the xAI homepage, xAI is separated from the rest of Elon Musk’s companies but plans to work with X Corp. (formerly Twitter), Tesla (TSLA), and other companies to “make progress” toward their mission. However, in November, Musk said that X Corp. shareholders will have a 25% stake in xAI, so the boundaries between the companies seemingly aren't as straightforward.
? Corp investors will own 25% of xAI — Elon Musk (@elonmusk) November 19, 2023
In January of this year, CNBC reported that xAI is seeking outside investment at a valuation of $15 billion to $20 billion. The company is reportedly looking to raise up to $1 billion in fresh capital. But the quick rise in valuation didn't end there.
In May, CNN reported that Elon Musk's AI company raised a whopping $6 billion in new capital at a $24 billion valuation. There were some prominent investors that participated in the Series B financing round, including prominent early-stage venture capital firm Sequoia Capital, crypto-focused VC Andreessen Horowitz (also known as a16z), and Saudi Prince Alwaleed Bin Talal. "The funds from the round will be used to take xAI’s first products to market, build advanced infrastructure, and accelerate the research and development of future technologies," wrote xAI in the blog post addressing the massive injection of new capital.
What does xAI do?
Currently, xAI has two main products – the Grok LLM model (which also powers a chatbot of the same name), as well as PromptIDE, an integrated development environment for prompt engineering.
Grok
Grok is an LLM (large language model) developed by xAI. Unlike most other LLMs, which tend to keep a neutral tone, Grok is designed to implement some humor and wit in its answers.
The most recent versions of Grok are Grok-2 and Grok-2 mini, which were both released in August 2024. This LLM is employed in the Grok chatbot, which users can access through the X social media platform. Grok has access to web search, which allows it to provide more up-to-date information to users.
PromptIDE
The xAI PromptIDE serves as a comprehensive development platform designed for prompt engineering and interpretability studies. It improves the prompt engineering process by providing an SDK (software development kit) for implementing advanced prompting strategies and offering detailed analytics to illustrate the model's outputs. xAI extensively employs this tool in the development of Grok.
Will there be an xAI IPO?
At the moment, there is no concrete xAI IPO date or information available about the specifics of a potential public offering.
Judging by Musk’s past business history, xAI likely won’t go public, at least not anytime soon. The list of companies Musk was a founder or co-founder of includes Tesla, SpaceX, Neuralink, Boring Company, and PayPal. Out of these companies, only Tesla and PayPal (PYPL) were ever listed on the stock exchange, with the latter only going public after Musk left the company.
How to buy X.AI Corp Stock?
There is currently no way to buy xAI stock, as the company is a startup and not listed on the stock market. However, there are a couple of methods you could use to gain exposure to xAI without buying its stock.
Invest in Tesla stock
Buying Tesla stock might be the best option for gaining exposure to xAI at the moment. According to Musk, xAI will work with Tesla in multiple ways (for example, Tesla’s self-driving capabilities will be improved due to xAI). That means that the price of Tesla shares will likely, at least in part, mirror the success and progress made by xAI.
The price of Tesla stock increased considerably last year, growing by +85% from a low of $113 in January 2023 to $209 in January 2024. While the broader market rallied in the past year in general, Tesla way outperformed the S&P 500 Index in the time period (S&P 500 gained +21.5% YTD).
A large part of the reason for last year's stock price increase lies in the fact that the company retained its dominant position in the EV market (above 60% in the U.S.) and increased the number of delivered vehicles from 241,300 units in Q4 2021 to 435,050 in Q3 2023. In addition, the company increased its revenue by 8.8% in the last earnings quarter, which is another reason for the Tesla stock being a good buy in 2024.
It's worth noting, however, that increased competition from other EV manufacturers is eating away at Tesla's profits and forcing the company to be increasingly more competitive. That resulted in a 43.7% reduction in net income in fiscal Q3 2023.
Over the past six months, Tesla's valuation has significantly dipped. The stock fell from $246 at the start of the year to about $215 at the time of writing, which is about a 12.6% drop. The decrease in stock price led to Tesla losing its spot among the 10 largest companies in the world by market capitalization. It currently sits in 11th place with a market cap of $690 billion.
Invest in AI ETFs
A less direct way to gain exposure to xAI is to invest in AI-tracking exchange-traded funds (ETFs). These funds are designed to invest in companies working in AI. Generally speaking, xAI’s success will largely depend on the success of the broader AI industry, so dispersing your capital among different AI companies (which is essentially what investing in AI ETFs is) might be your best bet.
Here are some of the most prominent AI ETFs you can invest in 2024:
| ETF | Stock Symbol | Net Assets | 1-Year Performance |
|---|---|---|---|
| Artificial Intelligence & Technology ETF | AIQ | $2.06 billion | +30.52% |
| Global X Robotics & Artificial Intelligence ETF | BOTZ | $2.72 billion | +11.6% |
| iShares Robotics and Artificial Intelligence Multisector ETF | IRBO | $653 million | +10.7% |
| WisdomTree Artificial Intelligence and Innovation Fund | WTAI | $268 million | +9.9% |
Data collected on June 26, 2023
Monitor pre-IPO platforms for X.AI stock sales
There are a number of platforms on the market today where users can buy shares from pre-IPO companies or private companies. Typically, those shares are being sold by employees who receive equity in a startup as part of their compensation plan. Examples of such platforms include Linqto, Forge, EquityZen and Hiive.
While these platforms can be helpful, shares for the company you want to invest in might not always be available for purchase. Since the liquidity for shares of private companies can be low, the pricing can also vary significantly across platforms and offers.
As a company, X.AI is in its very early stages, so it's unlikely that you'll find many offers from people looking to sell their equity in the company. However, if you're determined to invest in the company, we recommend you monitor pre-IPO platforms in case a sale of X.AI shares pops up.
X.AI Corp. stock FAQ
Is xAI on the stock market?
No, xAI is not on the stock market as it is still a startup and not publicly traded.
What’s xAI’s stock price?
There’s currently no X.AI Corp. stock price, as the shares of xAI are not trading publicly.
What’s xAI’s stock symbol?
There’s currently no information about a potential X.AI Corp. stock symbol. It is easy to imagine that the company might use the ticker symbol “XAI” if it eventually gets listed on NYSE or NASDAQ.
Who owns xAI?
xAI was founded by Elon Musk, a tech billionaire known for founding a number of technology companies, including Tesla, SpaceX, PayPal, and Neuralink. Given his large business empire, it's no surprise that Musk makes a whopping $537 per second or roughly $18.3 billion per year. However, it still remains to see if Elon Musk's AI company will replicate the success of his other ventures.
The bottom line
Founded in early 2023, xAI is a very young company that is still in the early stages of development. The company employs a dozen of AI and programming experts who are led by Elon Musk. The company’s goal is to “understand the true nature of the universe.” To achieve that lofty goal, the company wants to build an AGI system capable of understanding and answering fundamental questions about life and the universe.
Unfortunately, there’s currently no way to invest in xAI. You can, however, gain indirect exposure to xAI by investing in Tesla or buying AI-focused ETFs.
If you want to read more about successful private companies that might consider going public in the future, check out the following articles:
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