Summary: xAI is an American startup company founded by Elon Musk and dedicated to advancing artificial intelligence, with the ultimate goal of “understanding the true nature of the universe.” Unfortunately for investors, xAI is a private company, and it is not possible to buy xAI stock. However, you can still gain exposure to its performance by investing in alternative Musk’s business ventures and X (formerly Twitter) using a reputable brokerage like eToro.
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About xAI
Headquartered in San Francisco, California, xAI represents Elon Musk’s response to the current breakthroughs in the artificial intelligence sector. It was symbolically announced on July 12, 2023, as the date (7 + 12 + 23 = 42) refers to a supercomputer’s answer to the ultimate question of life in Douglas Adams’ The Hitchhiker’s Guide to the Galaxy.
According to its website, xAI is unrelated to Musk’s other business ventures. However, Musk announced on X (formerly Twitter) that X Corp’s shareholders will own 25% of xAI. Furthermore, in November 2023, xAI unveiled Grok, an AI chatbot available in beta to X’s premium subscribers.
Besides Musk, the dedicated xAI team includes machine learning expert Manuel Kroiss, former DeepMind and OpenAI expert Igor Babuschkin, and AI specialist Yuhuai (Tony) Wu.
As it is a privately owned company, you cannot buy xAI stock. Instead, investors can buy xAI stock alternatives among its competitors, invest in X (formerly Twitter) for second-hand exposure, or buy stock in Elon Musk’s other companies.
xAI stock IPO date
As of February 2024, there is virtually no information regarding a potential IPO of xAI. The company is still relatively young, and judging by Elon Musk’s more mature businesses that still remain private, such as SpaceX, it is unlikely to happen anytime soon. However, it would not do harm to follow the news for this information.
xAI valuation
The lack of reliable information also makes getting a precise answer virtually impossible. As an AI startup, xAI benefits significantly from the enormous appetite of the market for breakthroughs in artificial intelligence. However, this could also inflate the numbers past any objective guess or approximation.
Experts have different estimates of xAI valuation, ranging from $10 billion to $30 billion. However, most of these come as a result of comparison between xAI and established AI companies like Anthropic and OpenAI. Unlike them, xAI has little to show as a result of its work: just Grok, an AI chatbot, and the product is by no means something unique for the market. Furthermore, the high valuation can also be ascribed to what has been called “the Elon Musk effect”, which is the added value based solely on Musk’s name being associated with it, like with the crypto token Dogecoin (DOGE).
In May 2024, xAI raised $6 billion in series B funding, reaching a valuation of $24 billion according to Reuters.
How to buy xAI stock: step-by-step
As xAI remains in the private hands of Elon Musk, you cannot buy its stock. However, you can invest in his other business endeavor, Tesla (TSLA). It is his largest company and multinational giant known for being the world’s most valuable automaker and one of the largest global suppliers of clean energy and battery storage systems.
Although Musk is famous for his various business ventures, such as SpaceX, X (formerly Twitter), Neuralink, and The Boring Company, only Tesla remains a public entity in which individuals can invest through the stock market.
Also, you can invest in other companies in the artificial intelligence sector. For more information, consider the following guides:
- How to Buy Google Bard Stock;
- How to Buy Bing AI Stock;
- How to Buy Deepmind Stock;
- How to Buy Upstart Holdings Stock;
- How to Buy Baidu Stock;
- How to Buy C3.ai Stock;
- How to Buy Dynatrace Stock;
- How to Buy Veritone Stock;
- How to Buy Splunk Stock;
- How to Buy Synopsys Stock;
- How to Buy BrainChip Stock;
- How to Buy UiPath Stock;
- How to Buy Snowflake Stock;
Step 1: Choose a broker
Prior to buying any xAI stock alternatives, you have to gain access to the stock market. The easiest way to do this is through an online brokerage.
To securely buy xAI stock alternatives and gain exposure to the artificial intelligence market, we recommend you consider eToro:
- Commission-free stock and ETF trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- Charting tools;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
Step 2: Open and fund your account
Once you decide on an investing service, you need to register and verify your account. The platform will send you the correct instructions via email.
Then, you should deposit some funds into your account to prepare to buy xAI stock alternatives. Frequently used funding methods include bank transfers, debit or credit cards, and transaction services like PayPal.
Step 3: Decide how much you want to invest in xAI alternatives
Prevent spiraling debt and potential financial disaster by limiting the budget you want to invest with. Furthermore, you also need to make sure you have done the following:
- Paid off all high-interest debt, such as credit cards and personal loans;
- Created an emergency fund that covers at least three months of daily life expenses.
Remember
Step 4: Place your order and buy xAI alternative stocks
Next, you should place an order and purchase shares in xAI competitors or other Musk enterprises:
- Step 1: Log into your brokerage and find the desired stock ticker symbol;
- Step 2: Type in the amount or the number of shares you want to purchase;
- Step 3: Select the order type (market order or limit order) and place it;
- Step 4: Confirm the trade order.
Pros and cons of investing in AI companies
Pros
- Disruptive potential: AI could disrupt traditional industries by introducing much more efficient processes, automation, and enhanced decision-making. Companies at the helm of AI advancement, like xAI, are poised to benefit;
- Growth: AI is a rapidly expanding field with applications and benefits across virtually every industry. Buying xAI stock alternatives now allows investors to capitalize on any future breakthroughs;
- Scalability: Once AI systems successfully launch, they can usually be scaled up quickly and efficiently, leading to high-profit margins as adoption increases;
- Stock attractiveness: AI stocks frequently attract investor attention due to potential innovations and high returns, which can boost stock prices.
Cons
- Regulation: The development of AI could face regulatory scrutiny, especially concerning data privacy, bias, and ethical considerations. Future regulatory changes could impact the profitability and operations of AI companies like xAI;
- Volatility: AI stocks, especially those of smaller or younger companies, can be highly volatile. The pace of changes in technology, regulatory environments, or market sentiment can lead to wide swings in stock prices;
- Competition: The AI market is getting crowded, with established tech giants and startups like xAI competing for market share. Fierce competition can drop prices and reduce profit margins;
- Technical challenges: AI development faces issues such as data quality, algorithm complexity, and computational limitations, and developing AGI, which is the focus of xAI, gets exponentially more complicated. Failure to overcome these challenges can result in delays or setbacks, impacting performance.
Common mistakes to avoid when buying xAI stock alternatives
Make sure to avoid these common investing mistakes when investing in xAI stock alternatives:
- Lack of research: Research the state of the artificial intelligence market and other informational technology sectors before investing in these companies;
- Lack of strategy: Set your goals before you spend any money;
- Staking everything on one asset: Always diversify your portfolio;
- Falling prey to scams: Avoid illegal platforms and suspicious deals;
- Fear of missing out: If the numbers do not add up, do not invest: it is better to miss out than lose money.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy xAI stock
Where to buy xAI stock?
As it is not publicly traded, xAI stock is not listed on any stock exchange.
Why is xAI not listed?
As Elon Musk remains the owner of xAI, the company is not publicly traded. It will most likely remain private, at least in the near future.
Can I buy xAI stock?
As it is a private company, xAI has no publicly traded shares. Therefore, you cannot invest in xAI stock.
How much is xAI worth?
Various experts have opined on xAI’s valuation, ranging from a couple of billion to $30 billion.
Has an xAI stock IPO date been set?
There is no reliable information on xAI going public. However, judging by Elon Musk’s other business ventures that have still not gone public, an xAI IPO is unlikely as of now.
Is xAI listed on the stock market?
xAI is a private company and is not listed on the stock market, meaning its shares are not publicly traded.
How much is a share for xAI?
xAI is a private company, which means its shares are not available for public trading on the stock market.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
