Elon Musk’s artificial intelligence company, xAI, has acquired social media platform X in a massive $33 billion stock deal. The acquisition values xAI at $80 billion and positions the combined entity to deliver smarter experiences to billions of people worldwide.
Musk made the announcement on Friday, stating that the all-stock transaction will blend xAI’s advanced AI capabilities with X’s significant reach. The deal is expected to unlock immense potential for both companies. In 2022, Musk purchased X (formerly Twitter) for $44 billion, aiming to roll back censorship and utilize its platform more effectively.
Musk believes the merged entity will build a platform that not only reflects reality but also accelerates human progress. He sees X as the digital town square where users find accurate information in real-time. The combined company’s flagship product is Grok, an AI chatbot already integrated into X for premium subscribers.
xAI was founded by Musk in March 2023 and has since raised $10 billion in funding, valuing the company at $75 billion. With this acquisition, xAI will further distribute its products while leveraging the real-time data from X’s massive user base.
The deal solidifies xAI’s position as a major player in AI research, with plans to expand its data center capacity and develop more advanced models using its supercomputer cluster, dubbed “Colossus.” As competition in AI intensifies, this acquisition positions xAI for significant growth.
Source: https://www.foxbusiness.com/technology/elon-musks-ai-company-buys-x-blockbuster-33b-stock-deal