Explore opportunities to own xAI stock long before the xAI IPO. Get access to select pre-IPO startups via the Fundrise Innovation Fund.
Table of Contents
xAI Stock IPO Recent News
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
What is xAI?
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.
Is xAI Stock Publicly Traded?
No. xAI is a private company.
Who Owns xAI?
Musk has said that X investors will own 25% of xi.
𝕏 Corp investors will own 25% of xAI
— Elon Musk (@elonmusk) November 19, 2023
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.
What is the xAI Valuation?
The current xAI funding round, which aims to raise $1 billion, is estimated to value xAI at $15 to $20 billion.
However, Musk may struggle to raise funds at that level given the newness of xAI and his overpayment for Twitter. Private investors are willing to bet on Musk, but we’ll wait for proof that $15 billion is a feasible valuation after the funding round closes.
When is the xAI IPO Date?
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.
What is the xAI Stock Price?
xAI is private. There will be no public stock price until the xAI IPO.
Private transaction data via Hiive is currently limited to bids. Shares have not traded hands yet.
What is the xAI Stock Symbol? xAI Ticker?
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.
How to Buy xAI Stock
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 no evidence of pre-IPO availability on any of the major platforms. xAI is new and only started raising private funds in late December 2023.
The company only had about 20 employees at that time.
A few options exist that may offer shares in the future.
The ARK Venture Fund that is available at SoFi Invest is the most likely option to own xAI in the near term. When Musk took over, fund manager Cathie Wood invested in Twitter/X Corp stock.
Since he has said X Corp investors will own 25%, there’s a good chance Wood will buy xAI stock through the fund.
All U.S.-based individual investors 18 and up can invest in the ARK Venture Fund for a $500 minimum.
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 xAI shares available anywhere, so it may take some time before a market develops.
Equitybee provides accredited investors access to pre-IPO startups by funding employee stock options. In exchange, investors gain a portion of the future stock value.
Open an account to join Equitybee and get alerts on new opportunities. There is no obligation to sign up.
Other pre-IPO platforms 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 not a holding in the fund.
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.
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 after the xAI 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.
- Inflection AI
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.
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, available at SoFi Invest. Cathie Wood has already invested in X Corp, and X Corp shareholders are expected to have an option to invest in xAI.
The chances are greater than 50% that the fund will participate in the round.
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.
* Disclosure: The web page contains affiliate links from our partners. If a reader opens an account or buys a service from a link in this article, we may be compensated at no additional cost to the reader. Opening an account with a broker that provides access to IPOs does not guarantee the customer allocations of specific IPOs. The author is long the ARK Venture Fund and the Fundrise Innovation Fund.