How to Invest in xAI Stock in 2024

xAI is Elon Musk’s latest venture, focused exclusively on artificial intelligence with the mission to “understand the true nature of the universe” and combat misinformation. The company has introduced Grok, a chatbot integrated with X (formerly Twitter), available exclusively to X’s Premium+ subscribers. The xAI team comprises experts from Google and OpenAI, aiming to develop AI capable of advanced mathematical reasoning, potentially solving complex puzzles about our universe.

How to Buy xAI Stock

xAI is currently a private company, meaning it does not have a stock symbol or trade on public exchanges. However, accredited investors can purchase shares via Hiive, a pre-IPO marketplace.

Accreditation Requirements

To qualify as an accredited investor, you must meet one of the following criteria:

• An individual annual income of $200,000 or a joint income of $300,000.
• A net worth exceeding $1,000,000, excluding the primary residence.
• Status as a qualifying financial professional.

Hiive allows accredited investors to buy shares of private, venture capital-backed startups. Each xAI stock listing on Hiive is created by a unique seller, such as an employee or investor, who sets their own asking price and share quantity. Buyers can negotiate prices, place bids, or add the company to their watchlist for updates.

Can Retail Investors Buy xAI Stock?

Due to federal regulations, retail investors cannot directly invest in private companies like xAI. However, they can gain exposure through the ARK Venture Fund, where xAI constitutes 1.8% of the fund’s holdings. This fund also includes stakes in other private companies like SpaceX, Epic Games, and OpenAI. Retail investors can access the ARK Venture Fund via platforms like Titan or SoFi, while accredited investors can invest directly through Ark’s website.

Alternatives to Investing in xAI

For those interested in AI investments, several alternatives exist:

• Publicly Traded AI Companies:
  • Nvidia (NVDA): Leading in AI chip development.
  • Taiwan Semiconductor (TSM): Manufacturer of Nvidia’s AI GPUs.
  • Microsoft (MSFT): Major investor in OpenAI.
  • Alphabet (GOOGL): Involved in AI-powered search and cloud services.
  • Amazon (AMZN): Operates AWS, a key player in AI computing.
• ETFs and Private Funds:
  • Roundhill Generative AI & Technology ETF (CHAT): Focuses on generative AI companies.
  • Themes Generative Artificial Intelligence ETF (WISE): Invests in AI-driven companies.
  • Fundrise Innovation Fund: Offers access to a portfolio of private tech companies with a minimum investment of $10.

When Will xAI IPO?

There is no expectation for xAI to become publicly traded in the near future. Elon Musk’s strategy allows xAI to remain private, providing operational flexibility and independence from shareholder pressures. The company successfully raised $6 billion in May 2024, indicating strong private market support.

xAI’s Valuation

In its Series B funding round in May 2024, xAI was valued at $24 billion, marking the largest Series B in venture capital history. The round included investments from Andreessen Horowitz, Sequoia Capital, and Ark Investment Management, among others.

FAQs About Investing in xAI

What is xAI’s mission?
xAI aims to understand the true nature of the universe and combat misinformation through advanced AI technologies.

How can I invest in xAI before it goes public?
Accredited investors can purchase shares through Hiive, while retail investors can gain indirect exposure via the ARK Venture Fund.

When is xAI expected to go public?
There is no set timeline for xAI to go public, as the company benefits from remaining private under Elon Musk’s leadership.

What are the risks of investing in private companies like xAI?
Investing in private companies involves risks such as limited liquidity, market volatility, and the uncertainty of an IPO timeline.

Who are the major investors in xAI?
Major investors include Andreessen Horowitz, Sequoia Capital, and Ark Investment Management.