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Elon Musk sells the X system to his xAI business.
Elon Musk on Friday announced that his artificial intelligence company, xAI, has acquired social media platform X in an all-stock transaction.
The agreement puts X at$ 33 billion, more combining Musk’s large online community plaza ambitions with the huge reach of the deal.
” @xA I has purchased @X in an all-stock transaction. The combined amount of$ 80 billion and$ 33 billion ( 45 billion less$ 12 billion in debt ) values xAI and x at$ 33 billion. He wrote in an X article that “xA I has quickly become one of the leading AI laboratory in the world, creating designs and data locations at extraordinary speed and scale” since its establishment two years ago.
The future of xAI and x are tangled together. We actually combine the information, models, computation, distribution, and talent today, he continued.
The acquisition comes as a result of Musk’s campaign to position xAI as a leader in” truth-seeking” artificial intelligence.
He said, “XA I has quickly grown to be one of the world’s leading AI labs, creating models and data centres at an unprecedented rate and size, since its foundation two years ago.”
Grok, an AI robot integrated into X that offers real-time reactions and participates in net debates, was introduced by xAI in 2023. Although the robot has occasionally disagreed with his opinions, Musk has promoted Grok as an alternative to what he calls “woke AI.”
Musk claimed that combining X’s 600 million + customer base and xAI’s cutting-edge AI capabilities would result in” smarter, more meaningful experiences” while remaining committed to advanceing science and wisdom.
” X is the modern city square where more than 600M effective users come to find the real-time source of ground truth. In the past two years, it has been transformed into one of the most effective companies in the world, positioning it for robust potential growth,” he added.
The transaction comes in response to recent financial decisions by both businesses. X raised$ 1 billion in investment funding last year, increasing its valuation to$ 44 billion, while xAI secured backing from BlackRock, Fidelity, Morgan Stanley, Sequoia Capital, Nvidia, and AMD, increasing its value to$ 45 billion in December. Reports indicate that xAI may soon begin a new funding round with a$ 75 billion valuation.
The futures of xAI and x are tangled together. We officially combine the data, models, computation, distribution, and talent today. By combining X’s extensive reach and xAI’s advanced AI expertise, this combination will unlock enormous potential. The combined company will offer billions of people smarter, more meaningful experiences while remaining true to our main goals of finding the truth and spreading knowledge. This will enable us to create a platform that not only represents the world but actively promotes human progress,” he said in his statement.
