How to Invest in xAI Pre-IPO

By Matthew DiLallo – Updated Jun 25, 2025 at 10:27 AM

Key Points

Elon Musk's AI startup xAI, launched in 2023, reached a $50 billion valuation by early 2025.
xAI remains privately held, not tradable publicly; accredited investors can buy pre-IPO shares via secondary markets.
Investment opportunities in AI include buying shares of firms like Nvidia, Meta, or Tesla, which are focused on AI advancements.

xAI is one of the hottest artificial intelligence (AI) start-ups on the planet. Elon Musk launched xAI in 2023, and it has raised billions of dollars from investors to build an AI company to help accelerate human scientific discovery.

Loading paragraph...

Artificial Intelligence

Artificial intelligence is the use of machines to mimic human intelligence.

Musk's AI start-up was worth a staggering $50 billion as of early 2025 (more than double its valuation from earlier in 2024), not more than a year after its founding. That made it the third-most valuable AI start-up behind OpenAI, the developer of the popular AI chatbot ChatGPT and Anthropic. xAI has its own AI chatbot, Grok, which launched in late 2023 to subscribers of Musk's X social media platform.

Loading paragraph...

An AI chip on a circuit board with brightly colored wires hooked to it. — Image Source: Getty Images.

Venture capital funds and other institutional investors have invested billions of dollars into xAI, hoping it will emerge as a leader in the AI age. Here's everything you need to know about xAI and how to potentially invest in the AI stock before it completes an initial public offering (IPO).

Loading paragraph...

IPO

IPO (Initial Public Offering) is the first sale of stock by a private company to the public, making it a publicly traded entity.

Loading paragraph...

Accredited Investor

An individual or entity that has a certain level of financial sophistication.

Loading paragraph...

Elon Musk on stage by the Tesla Roadster. — Image source: Tesla.

Loading paragraph...

How to Invest in Intercom Pre-IPO

Over 25,000 companies use Intercom's next-gen customer service platform to send over 600 million messages monthly.

How to Invest in Anduril Pre-IPO

Anduril is an upstart defense contractor that specializes in autonomous solutions through its core software platform, Lattice.

How to Invest in Figure AI Pre-IPO

Figure AI is committed to making AI-powered humanoid robots, leading its stock to pop up on AI-focused investors' radars.

How to Invest in Cerebras Pre-IPO

Cerebras develops platforms for AI training, and it may hold an IPO soon, giving investors a chance to buy Cerebras stock.

The bottom line on xAI

xAI has burst onto the scene over the past year to become the second-most valuable AI start-up. The Musk-led AI company has a bold vision and lots of funding to execute its mission, so it appears to have a bright future.

Although most people can't invest in the stock yet, there are many ways to gain exposure to the company and the trends driving AI investment. Those investments could pay off if AI lives up to all the hype.

Loading paragraph...

Loading faq...

About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Matt DiLallo has positions in Meta Platforms and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Nvidia, Palantir Technologies, and Tesla. The Motley Fool recommends BlackBerry. The Motley Fool has a disclosure policy.