Elon Musk’s xAI to acquire his X social media platform
Billionaire Elon Musk made headlines on Friday with the announcement that his artificial intelligence startup xAI is acquiring his social networking platform X in a deal worth $33 billion. This move aims to combine the advanced AI capabilities of xAI with the massive user base of X, which boasts over 600 million users.
According to Musk, the future of X is closely linked with that of xAI, which was launched just two years ago. By merging the data, models, compute power, distribution, and talent of the two companies, Musk believes they can create a platform that not only reflects the world but actively accelerates human progress.
The acquisition is structured as an all-stock deal, valuing xAI at $80 billion and X at $33 billion, taking into account X’s $12 billion debt. This comes after Musk purchased Twitter for $44 billion in late 2022 and subsequently launched xAI, investing heavily in high-end Nvidia chips for the venture.
One of the key products of xAI is Grok 3, the latest version of its chatbot, which Musk touts as “scary smart” with significantly more computational resources than its predecessor. Grok 3 faces stiff competition from other AI chatbots like ChatGPT and China’s DeepSeek, as well as from OpenAI’s ChatGPT, led by Musk’s former collaborator turned rival, Sam Altman.
Musk and Altman were part of the team that founded OpenAI in 2015, with Musk providing initial funding before eventually leaving the project. The release of ChatGPT in 2022 propelled Altman to tech stardom, leading to a strained relationship with Musk that has since turned litigious.
Meanwhile, X’s owner, Elon Musk, the world’s wealthiest individual, is also a major financial supporter of President Trump and oversees the Department of Government Efficiency (DOGE), which has been reducing the government workforce. Ad revenue at X is expected to grow this year, with advertisers potentially viewing spending on the platform as a way to avoid any legal or financial repercussions from Musk’s political connections.
In conclusion, the merger of xAI and X represents a significant step towards harnessing the power of artificial intelligence and social networking to drive human progress. As Musk continues to push the boundaries of technology and innovation, the future of these combined companies holds great promise for shaping the digital landscape.
