Elon Musk’s XAI Has Purchased X, Also From Elon Musk
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Elon Musk’s artificial intelligence company, xAI, has purchased the social networking platform X (formerly Twitter), which Musk already owns. Musk has transferred ownership of X to xAI in an all-stock deal valued at $33 billion, the billionaire posted on X on Friday. The goal of the merger is to bring together XAI’s artificial intelligence skills and technology with X’s reach, promising smarter experiences.
xAI’s acquisition of X has raised its overall valuation to $45 billion
Elon Musk bought Twitter in 2022 for $44 billion and renamed it to X. Now, xAI, the maker of the artificial intelligence chatbot Grok, has purchased X in an all-share deal. “The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt),” Musk wrote in a post on X. He also stated that xAI and X share an intertwined future. Since both companies are private, they don’t have to reveal their exact financial details to the public. However, the deal includes $12 of debt, which raises the overall valuation for X to $45 billion.
Musk has mentioned that xAI and X plan on combining “data, models, compute, distribution, and talent,” using the latter’s reach as a social platform to expand the former’s advanced AI capability. It’s worth mentioning that X has already deeply integrated xAI’s AI chatbot Grok.
The deal will strengthen xAI’s position in the AI market
xAI’s acquisition of X comes amid growing competition in the world of artificial intelligence. Musk is positioning xAI as a leader in “truth-seeking” artificial intelligence. The company launched Grok in 2023, which offers real-time responses and engages in online debates. With a valuation of $80 billion, xAI moves somewhat closer to its rival, OpenAI, which currently holds a valuation of around $157 billion.
Musk has marketed Grok as an alternative to what he calls “woke AI.” He said that xAI will merge its cutting-edge artificial intelligence capabilities with X’s 600 million+ user base to create “smarter, more meaningful experiences.”
That said, X users can expect new AI-powered features on the social networking platform in the coming months. The xAI deal could bring new AI-generated content suggestions, personalized feeds, and better moderation tools to X. However, the company hasn’t officially disclosed anything yet, so we can only wait and watch what the acquisition will bring for X.
