Tech billionaire Elon Musk has announced the sale of X, formerly known as Twitter, to his artificial intelligence company, xAI, in an all-stock transaction valued at $33 billion (€30.5 billion). Musk, who originally acquired Twitter for $44 billion (€40 billion) in 2022, rebranded it as X and has now positioned it as a key component in xAI’s strategy for AI development and global digital communication.
Details of the Acquisition.
Musk shared on X that the merger values xAI at $80 billion, while X is valued at $33 billion after accounting for $12 billion in debt. He emphasized that xAI has rapidly grown into one of the world’s leading AI labs, focusing on building advanced models and data centers at an unprecedented scale.
“Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale. X is the digital town square where more than 600 million active users go to find the real-time source of ground truth,” Musk stated. “In the last two years, it has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth.”
Musk highlighted the synergies between xAI and X, stating that the integration will combine data, computational power, distribution, and top AI talent to create new innovations.
“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,” he added. “This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”
Implications for X Users.
The long-term impact of this move on X’s user base remains unclear. Currently, xAI utilizes data from X posts to train its AI models, while paying X users have access to its AI chatbot, Grok. As xAI expands its AI supercomputer, ‘Colossus,’ to compete with rivals like OpenAI, it is expected that deeper AI integrations could become a central feature of X.
Elon Musk is a South African-born entrepreneur and billionaire known for his role in pioneering multiple cutting-edge technology ventures. As the CEO of Tesla and SpaceX, he has played a crucial role in advancing electric vehicles, space exploration, and AI-driven technologies. His ventures also include Neuralink, which focuses on brain-computer interfaces, and The Boring Company, which aims to revolutionize urban transportation.
Beyond business, Musk has been an influential figure in U.S. politics, often weighing in on issues such as free speech, government regulations, and technology policy. He has been a vocal critic of government intervention in business and has openly supported policies that favor innovation with minimal restrictions. Musk has also maintained close ties with U.S. President Donald Trump, serving as an informal adviser, particularly regarding cryptocurrency policies and technology regulations.
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A Strategic Move in the AI Race.
This acquisition marks another significant step in Musk’s broader vision of integrating AI into daily digital interactions. With OpenAI, Google’s DeepMind, and Meta investing heavily in AI, Musk’s latest move positions xAI as a formidable player in the race to dominate the future of artificial intelligence.
As xAI and X move forward as a unified entity, the world will be watching to see how Musk’s vision of AI-enhanced social media unfolds and whether it will redefine the way humans interact online.
