Pierre Ferragu, an analyst at New Avenue Analysis, long-time Tesla Inc. TSLA advocate, and Grok investor, believes that the $113 billion market cap of Elon Musk’s newest merger will quickly appear modest.
What Occurred: Ferragu reacted positively to the information that Musk is merging xAI together with his social media platform X in a deal valuing the mixed entity at $113 billion.
“Oh sure. The worldwide city sq. is taking an enormous step up,” Ferragu stated X, including that the $113 billion valuation “will look tiny in just a few years,” highlighting his bullish outlook on the expansion potential of the merged firms.
“A lot potential,” he stated, whereas additionally noting, “I’m biased, do your individual analysis.”
See Additionally: Ex-OpenAI Chief Scientist Ilya Sutskever’s AI Startup Valued At $30 Billion In Newest Funding Spherical: Report
This $113bn market cap will look tiny in just a few years. A lot potential. (I’m biased, do your individual analysis.)
– Pierre Ferragu (@P_Ferragu) March 29, 2025
Why It Issues: The all-stock deal combines xAI, which Musk launched to rival ChatGPT-parent OpenAI, with X, previously Twitter, which he acquired for $44 billion in October 2022.
Musk stated the merger will unify “knowledge, fashions, compute, distribution and expertise” beneath a brand new holding firm, xAI Holdings Corp. The transfer values xAI at $80 billion and X at $33 billion.
Musk has a historical past of merging his personal firms. In 2016, he leveraged Tesla inventory to amass SolarCity, his photo voltaic vitality enterprise.
His different privately held enterprises embrace SpaceX, which focuses on rocket know-how; Neuralink, an organization creating brain-implant chips; and The Boring Firm, specializing in tunnel development.
Photograph courtesy: Shutterstock
Try extra of Benzinga’s Shopper Tech protection by following this hyperlink.
Learn Subsequent:
Disclaimer: This content material was partially produced with the assistance of Benzinga Neuro and was reviewed and printed by Benzinga editors.
Inventory Rating Locked: Wish to See it?
Benzinga Rankings offer you important metrics on any inventory – anytime.
Reveal Full Rating
Momentum90.17
Growth68.11
Quality96.38
Value10.98
Market Information and Information delivered to you by Benzinga APIs
© 2025 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.
