Exclusive Access: xAI
Secondary Capital has secured a $2M allocation in a strategic secondary allocation for xAI .
Secondary Capital will be participating through a dedicated SPV that sits underneath an xAI-approved vehicle with direct cap table access. While we're not directly on the cap table, we're part of a tightly controlled structure that's been approved.
SPV Economics
10% placement fee
0% management fee • 0% carry
Wire Deadline
Friday August 22nd
2025
INVESTMENT OVERVIEW
The Opportunity
We believe a secondary investment in xAI presents a high-conviction asymmetric opportunity. The company is uniquely positioned at the intersection of frontier AI, real-time data networks, and autonomous systems—supported by one of the most effective technology entrepreneurs of this generation. While risks exist, the upside potential as xAI scales Grok, expands product lines, and prepares for public markets far outweighs the current entry valuation.
Allocation
$2M
At $113B post‑money valuation cap
Structure
All-In 10% Fee
No additional costs or carry
Access
Direct SPV
Via approved direct cap table access
MARKET LEADERSHIP
Market Position
At the Intersection of Multi-modal LLMs | Foundation Models | Artificial Intelligence
Founder Advantage + Ecosystem Leverage
Elon Musk’s track record in scaling transformative technologies (Tesla, SpaceX) provides strong foundermarket fit. xAI benefits from:
• Integration with X for real-time data and massive distribution
• Inference + data processing potential via Tesla’s Dojo compute and Starlink edge network
• Alignment with open-source AI efforts and AGI safety messaging
High-Growth Sector with Clear Catalysts
• The foundation model and AI agent markets are growing at >30% CAGR
• xAI’s Grok is showing early traction within X, with expansion planned into vehicles (Tesla), enterprise, and robotics
• Significant revenue optionality via licensing, API access, and enterprise integration
Scarcity of Late-Stage Exposure
• Few scaled private AI companies remain accessible to secondary buyers
• xAI represents one of the last direct opportunities to gain exposure to a credible OpenAI competitor prior to IPO or strategic acquisition
Favorable Entry Relative to Public Comparables
• Public comps (e.g., Anthropic via Amazon, OpenAI via Microsoft) suggest 20–40x revenue multiples
• If xAI achieves even modest monetization of its Grok platform across X/Tesla, a public valuation in excess of $50B+ is plausible within 12–24 months
ABOUT xAI
Company Overview
Founded: 2023 by Elon Musk
Headquarters: San Francisco, CA
Sector: Artificial Intelligence / Foundation Models / Multi-modal LLMs
Core Product: Grok, an AI chatbot integrated into X (formerly Twitter)
Series C Funding (last primary round Dec 2024): Over $6 billion in primary capital raised
Series C Valuation : ~$50 billion
Debt & Equity Financing (July 2025): xAI secured $5 billion in debt financing and an additional $5 billion in equity
Current Secondary Market Range: $113 billion following its merger with X and a major investment from SpaceX
Monetization
Grok is already monetized on X; other use cases are underdevelopment
Differentiation
xAI’s positioning as a less censored, faster-moving alternative may carve a strong niche
Transparency
XAI allows for understanding how AI models arrive at their conclusions
BUSINESS PERFORMANCE
Commerical Traction
Focused Growth Across Enterprise & API Channels
Real-world examples of XAI in action
Financial Services:
PayPal uses XAI to understand why its fraud detection system flags a transaction as fraudulent, allowing them to review and modify decisions as needed.
ZestFinance utilizes XAI in its ZAML platform to explain credit risk assessments to loan applicants, promoting transparency and fairness in lending decisions.
BlackRock leverages XAI to explain investment strategies to clients and investment managers.
Healthcare:
IBM Watson Health employs XAI to explain treatment recommendations based on patient data and medical literature.
Google DeepMind uses an XAI model in ophthalmology to diagnose retinal diseases and provide explanations for its diagnoses.
PathAI has an AI-based system that helps diagnose diseases like cancer and provides doctors with the information to make accurate diagnoses.
INVESTMENT THESIS
Why We’re Inveseting
Asymmetric Upside, Safety-First Execution, and Strategic Differentiation
We believe a secondary investment in xAI presents a high-conviction asymmetric opportunity. The company is uniquely positioned at the intersection of frontier AI, real-time data networks, and autonomous systems—supported by one of the most effective technology entrepreneurs of this generation. While risks exist, the upside potential as xAI scales Grok, expands product lines, and prepares for public markets far outweighs the current entry valuation.
INVESTMENT STRUCTURE
SPV — Direct Participation via Approved Lead Vehicle
All-in cost: 10% placement fee. No hidden fees, no carry, no ongoing charges.
Secure Your Allocation
This allocation—secured by Secondary Capital exclusively for our investor base—is expected to close this month.
Wires due by August 22nd.
Next Steps
1
Sign NDA → Access materials
2
Schedule a Call
3
Wire by August 22nd
DISCLAIMER
Secondary Capital is not currently registered as an investment adviser or broker-dealer with the U.S. Securities and Exchange Commission (SEC). This website is for informational purposes only and does not constitute an offer to buy or sell securities or investment products. Any future offerings will be made in compliance with applicable laws and regulations.