xAI, a company with no reported profitability and minimal revenue, is facing scrutiny following its acquisition of a $44 billion company. Analysts have noted that xAI's valuation stands at approximately $80 billion, despite generating around $100 million in revenue and lacking growth estimates. In contrast, Anthropic, valued at $61.5 billion, has reported about $1 billion in revenue and a growth rate of 386%. OpenAI is valued between $157 billion and $300 billion, with revenues of around $4 billion and a growth rate of 248%. Observers have characterized xAI's financial profile as resembling a slower-growing, more leveraged version of another entity, CRWV, yet at five times the valuation. The discussions highlight the speculative nature of xAI's valuation and raise questions about its long-term viability in the competitive AI landscape.
xAI acquiring X is essentially one large accounting play.
How would you value xAI? OpenAI ~$157-300B with ~4 billion in revenues and 248% revenue growth Anthropic ~61.5B with ~1 billion in revenues and 386% revenue growth rate xAI ~100 million in revenue, no growth estimate
Combined X / xAI has ~$2B in revs, probably burns $5-10B in cash and owns 100s of thousands of GPUs… on financial profile alone, it looks like a slower-growing and more levered looking version of $CRWV at 5x the valuation