xAI Stock: How to Invest Before the xAI IPO

Explore opportunities to own xAI stock before the IPO. Linqto* removes barriers to private markets and gives you access to invest in pre-IPO companies. xAI was recently available, but quickly sold out. Also monitor the Hiive pre-IPO marketplace for availability. 

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xAI Recent News

12/05/2024: xAI lands $6B in new cash to fuel AI ambitions
11/20/2024: xAI Startup Is Valued at $50 Billion in New Funding Round
11/17/2024: xAI in talks with Middle East investors $45bn valuation
11/01/2024: Nvidia in talks over investing in xAI
Older news…

About xAI

xAI is an artificial intelligence (AI) company started by Elon Musk to challenge large language model (LLM) incumbents such as OpenAI, Inflection AI, and Anthropic.

The company was founded on March 9th, 2023, but Musk didn’t announce its formation until July 12th. 

Its initial product, Grok, was launched via X (Twitter) on Twitter in November 2023.

Grok is an AI modeled after the Hitchhiker’s Guide to the Galaxy, so intended to answer almost anything and, far harder, even suggest what questions to ask! Grok is designed to answer questions with a bit of wit and has a rebellious streak, so please don’t use it if you hate humor!

xAI aims to raise $1 billion at a $15 billion valuation as it builds the company. The rapid rise and valuation are testaments to Elon Musk’s track record of building successful startups into multi-billion companies. 

Ownership

Musk has said that X investors will own 25% of xAI. 

https://twitter.com/elonmusk/status/1726177644671091192

Reporting by Bloomberg clarified what that means: 

In practice, that means those investors are invited to invest in xAI at least 25% of the amount they invested in X, according to a person with knowledge of the arrangement. If they invested $10 billion in X, they’re invited to invest $2.5 billion or more in xAI, for example.

At this stage, it is unclear what entities have invested in xAI. 

Here’s a list of X Corp investors from when Musk acquired Twitter. Musk will likely maintain a majority position in xAI. Cathie Wood’s ARK Venture Fund is also an investor. I and many Access IPOs readers also own this fund, thereby making us stockholders. 

Funding Rounds

WordPress Data Table Plugin

Valuation

The latest xAI funding round, which reported raised $5 billion, is estimated to value xAI at $50 billion as of November 2024.

xAI had raised $6 billion earlier in 2024, valuing the company at $25 billion. It’s valuation was under $1 billion as recent as December 2023. 

IPO Potential 

The xAI IPO date is likely several years away. Musk often keeps his companies private, offering new investors a chance to acquire equity and employees to liquidate private shares periodically. 

Grok is a new product with limited training. xAI is likely pre-revenue, so there are no indications that it is anywhere near becoming public.

Though xAI is separate from Musk’s other companies, including SpaceX, X Corp, The Boring Coming, Tesla, and Neuralink, he has shared that he intends to share data across companies. xAI may eventually be merged or acquired by one of his other companies.

However, that strategy did not bode well for Tesla’s merger with SolarCity.

If AI companies start to IPO and show successful outcomes, other AI companies may rush to the public markets. Cerebras is the first pure-play AI company aiming to IPO. 

Three Ways to Invest in xAI

xAI stock is not publicly traded today. Opportunities to acquire private shares of xAI are limited for now, at least until the last funding round is completed. 

However, investors can explore pre-IPO opportunities to own shares before Wall Street. 

Most investors will need to wait until the IPO is complete to invest. 

1. Access shares via pre-IPO investing platforms

I have seen solid evidence of pre-IPO availability on major pre-IPO platforms. Linqto removes barriers to private markets and gives you access to invest in pre-IPO companies. xAI was available in Summer/Fall 2024 but sold out. The minimum investment is $2,500-$5,000 when available.

The ARK Venture Fund purchased a stake in xAI. Retail investors can now buy the ARK Venture Fund to own xAI stock. 

When Musk took over X Corp, fund manager Cathie Wood invested in Twitter/X Corp stock.

He originally had said X Corp investors will own 25% of xAI, so that may be own Wood acquired shares. Or she participated in the round. 

All U.S.-based individual investors 18 and up can invest in the ARK Venture Fund for a $500 minimum. Non-accredited investors are welcome.

The Hiive pre-IPO marketplace is where I look for pre-IPO data and availability. 

Sellers can list shares and buyers can declare bids for shares, helping to put a price on private shares when a transaction completes.

But as of now, there are minimal direct xAI shares available anywhere, so it may take some time before a market develops. 

Other pre-IPO platforms that may offer access include EquityZen, Forge Global, and Linqto. 

Non-accredited investors can own venture capital funds such as the Fundrise Innovation Fund ($10 minimum to invest) to get pre-IPO company access for their portfolios. 

However, xAI is probably not a holding in the fund (but I have suspicions). It does hold OpenAI, Databricks, and Anthropic. 

Check out our list of the best pre-IPO investing platforms for current platforms that may have shares available.

Please note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on AccessIPOs.com. All opinions are my own.

2. Buy the stock during the xAI IPO through a participating broker

There is no indication that the xAI IPO is near. However, if you cannot acquire pre-IPO shares, the IPO will be the next opportunity.

Large brokers such as Fidelity and Charles Schwab sometimes offer IPO allocations to customers but distribute them to their wealthiest clients. That only helps some of us. 

However, multiple brokers now offer the chance to invest in IPOs. Here are the most active IPO brokers. 

• TradeStation 
• Robinhood

Here’s a list of the top brokers for IPO investing. 

If your broker offers IPO access, join the email and text alerts for upcoming IPOs. There are no guarantees you’ll receive shares when a deal is live, but you’ll be surprised by the number of IPOs available. 

It is helpful to open and fund your account ahead of time. Some brokers require “settled” cash to invest in IPOs. It takes a few days for cash to settle from bank transfers, and there may not be enough time if the IPO is imminent. 

3. Buy the stock post-IPO

Most investors are not eligible for direct pre-IPO shares, and getting allocations in any IPO is challenging. 

The best chance of owning xAI stock is to wait for the IPO and buy it afterward. This is not the news most investors want to hear, but it’s the reality. 

Often, IPO prices jump on the first day of trading, so it may make sense to wait a few quarters before owning the stock to let the price volatility settle. 

You may find discounted opportunities to own xAI stock months after the IPO. 

Frequently Asked Questions (FAQs)

Is xAI Publicly Traded?

No. xAI is not publicly traded. It is a private company

Who are xAI’s competitors?

• OpenAI
• Anthropic
• Inflection AI
• Cohere

What is the xAI Stock Price?

xAI is private. There will be no public stock price until the xAI IPO. 

The May 2024 funding round that completed at about $12 per share. 

Private transaction data via Hiive is currently limited. 

What is the xAI Stock Symbol? 

There is no xAI stock symbol yet because the company is private and has yet to file an S-1 with the SEC.

It could be several years away from an IPO.

“XAI” is currently available. 

Can you buy xAI Shares?

Accredited investors may be able to find access to direct shares of xAI via Linqto. However, non-accredited investors will need to access equity via a venture capital fund like the ARK Venture Fund. 

Where can I find the xAI IPO S-1 Filing?

xAI has not submitted an S-1 filing with the SEC and is likely several years away from an IPO.

When ready, the company will likely submit a confidential S-1 a few months before the IPO, then release the filing once it is qualified by the SEC. 

We will embed a copy of the S-1 filing on this web page for reference when it is available.

xAI News Archive

10/29/2024: xAI in Talks to Raise Funding Valuing It at $40 Billion
05/29/2024: Can Elon Musk’s xAI take on OpenAI?
05/25/2024: Musk Plans xAI Supercomputer
05/08/2024: xAI Nears Funding at $18 Billion Value Soon As This Week
04/26/2024: xAI is closing on $6 billion in funding
04/05/2024: Investors to Help xAI Raise $3 Billion at $18 B valuation
02/29/2024: xAI aims for capital raise valuing as high as $20B
02/23/2024: What’s the point of Elon Musk’s AI company?
02/05/2024:  xAI’s Biggest Investor Pitches
01/19/2024: xAI Secures $500 Million Toward $1 Billion Goal
12/05/2023: xAI has Raised $135 million of $1 Billion

Conclusion

Investors want to own companies riding extraordinary trends (AI, Elon Musk). But buying stock early on can often prove difficult for retail investors, especially non-accredited ones.

xAI is a new company with few shareholders and limited equity until the first significant funding round is complete.

Once that deal happens, institutional investors or early employees may list shares on pre-IPO platforms to cash out. 

The best method for retail investors to acquire an equity stake is to own the ARK Venture Fund. Cathie Wood has already invested in the company pre-IPO and by owning the fund, retail investors can get exposure to xAI equity. 

I predicted this would happen several months ago, and it did. 

Pre-IPO investing platforms provide new opportunities to own high-demand startups. But private venture capital investing is still primarily reserved for the ultra-wealthy, requiring millions to invest in seed and early funding rounds for disruptive companies. 

So if you decide to pursue IPO shares or early equity, maintain reasonable expectations. Acquiring xAI stock before or during the xAI IPO won’t be easy. 

Waiting until after the IPO is sometimes a way to buy discounted shares, as hefty post-IPO valuations can turn into retail investor losses. 

If xAI stock is on your acquisition list, good luck. Invest in pre-IPO and IPO companies with caution.