Deepwater Asset Management's Gene Munster on Thursday predicted that Elon Musk's decision to acquire Twitter, now rebranded as X, will increase his artificial intelligence company xAI's value.
What Happened: Munster took to X and shared his insights about Musk’s decision to acquire the social media platform for $44 billion in October 2022.
He said, "It's getting more clear. @elonmusk is 80% genius, 20% master of good luck," predicting that the tech billionaire's purchase of Twitter will power xAI, a foundation model, to rival Tesla and SpaceX as his primary wealth creation sources.
According to Munster, Twitter’s data will train xAI, which will end up increasing its value to hundreds of billions of dollars.
"The reason is Twitter's data is powerful (best source of real time intention), and he'll use the data to train xAI to be a top three Foundation Model," he said, adding, "Those models should be valued in the hundreds of billions of dollars."
Musk launched xAI last year. At the time, the company said that it was seeking to "understand the true nature of the universe." In November 2023, xAI launched its first AI model Grok.
Why It Matters: Munster’s latest prediction comes amid the development around Musk’s net worth and the performance of his companies.
Last month, it was reported that Musk’s net worth slid by $18 billion or 8.3% to $198 billion following Tesla’s fourth-quarter results. These results fell below Wall Street expectations and led to a sell-off, driven by concerns over the EV maker's future outlook.
This marked the first time since late October that Musk's wealth fell below this level.
At the time of writing, the wealthiest individual in the world's net worth was $212 billion, according to the Bloomberg Billionaire Index.
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