xAI and X are two separate companies. xAI is raising funds with a target valuation of $40b, but that has nothing to do with X. The article you linked to makes this pretty clear and validates what I said about the 80% lost.
> The new valuation means xAI has surpassed the $44 billion Musk paid for Twitter in October 2022. X was valued at $9.4 billion by Fidelity, one of its investors, in September. The firm, which invested $19.6 million in the platform, has written down the value of its investment by nearly 79% since 2022.
Cutting 80% of the staff happened during the same time period when Fidelity dropped the evaluation by 79%. Cutting the staff doesn't seem like a good move at all.
> The new valuation means xAI has surpassed the $44 billion Musk paid for Twitter in October 2022. X was valued at $9.4 billion by Fidelity, one of its investors, in September. The firm, which invested $19.6 million in the platform, has written down the value of its investment by nearly 79% since 2022.
Cutting 80% of the staff happened during the same time period when Fidelity dropped the evaluation by 79%. Cutting the staff doesn't seem like a good move at all.