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How China has changed the game for AI valuations

30 April 2025
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How China has changed the game for AI valuations
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Despite Tesla’s recent stock volatility, investor confidence in Elon Musk’s vision remains strong, particularly with his new venture, XAI Holdings, aiming to create an “everything app” that integrates social media, AI, and payments. However, competition from China’s Tencent, which has seamlessly incorporated AI into its WeChat platform, challenges Musk’s vertically integrated model, emphasizing cost efficiency and integration speed over ownership. As AI valuations shift, Musk’s ambitions may face difficulties, as X’s valuation could realistically be much lower than his projections, signaling a broader repricing trend in the AI sector.

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