XAI Makes Anthropic Look Cheap

The main question after Elon Musk (somewhat predictably) merged xAI with X, which he announced late Friday, is how xAI will build a business the way OpenAI and Anthropic have.

Musk says xAI is worth $80 billion. Fine. But Anthropic is privately worth $60 billion and is generating about $120 million a month in revenue. XAI’s revenue is probably a small fraction of that figure and comes from a revenue-sharing deal with X.

In other words, if Anthropic has made OpenAI’s valuation look cheap on a revenue multiple basis, xAI makes Anthropic stock look super cheap in comparison.

XAI has a few ways to grow into its inflated valuation.