Elon Musk’s xAI Acquires X in $33 Billion Deal

Elon Musk’s artificial intelligence company, xAI, has officially acquired his social media platform, X (formerly known as Twitter), in an all-stock transaction that values the platform at $33 billion, including $12 billion in debt.

The merger represents a significant step in Musk’s vision to integrate AI technology with social media.

The acquisition is expected to enhance user experiences by leveraging xAI’s advanced artificial intelligence capabilities within X’s expansive social media platform. The deal aligns with Musk’s broader strategy of consolidating his ventures, similar to Tesla’s acquisition of SolarCity in 2016. Industry experts suggest that this move will strengthen xAI’s competitive positioning in the AI space, particularly through the integration of its chatbot, Grok, into X’s platform.

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Musk originally purchased Twitter in 2022 for $44 billion and later rebranded it as X, implementing significant changes, including workforce reductions, feature modifications, and an emphasis on free speech and content monetisation. This latest merger is seen as another milestone in his efforts to transform X into an all-encompassing “everything app,” incorporating AI-driven interactions and functionalities

The deal values xAI at approximately $80 billion, bringing the combined valuation of both entities to an estimated $113 billion. Analysts predict that the merger will intensify competition in the AI sector, strengthening Musk’s company against major players like OpenAI and Google DeepMind.

The integration of AI into X is expected to bring transformative changes, such as improved AI-driven content moderation, personalised user experiences, and enhanced chatbot functionalities.