Elon Musk’s AI company xAI has acquired his social media platform X in
an all-stock transaction, merging data, models, and distribution for future AI
advancements.
.jpg "Elon Musk’s xAI Acquires X to Advance AI Integration")
San Francisco, California – Elon Musk has announced that his artificial
intelligence venture, xAI, has acquired social media platform X, formerly known
as Twitter, in an all-stock transaction. The deal values xAI at $80 billion and
X at $33 billion, according to Musk’s statement on X Friday.
Musk originally purchased Twitter for $44 billion in 2022, rebranding it
as X. This latest move signals a deeper integration between AI technology and
social media. “xAI and X's futures are intertwined,” Musk wrote. “Today, we
officially take the step to combine the data, models, compute, distribution,
and talent.”
The acquisition could be aimed at protecting investors who backed Musk’s
purchase of X while strengthening xAI’s capabilities. Both companies are
privately held and share significant resources, including investors and data
infrastructure.
“The combined company will deliver smarter, more meaningful experiences
to billions of people while staying true to our core mission of seeking truth
and advancing knowledge,” Musk stated.
xAI has already leveraged data from X to train its AI models, with its
chatbot, Grok, being a key feature on the platform. Analysts believe this move
aligns with industry trends, as major tech firms continue to ramp up
investments in artificial intelligence, data centers, and computing power.
“The move appears sensible, considering the current trend of increased
investments in AI, data centers, and computing,” said Paolo Pescatore, founder
of PP Foresight.