Elon Musk’s AI startup xAI has officially acquired social media platform X, formerly Twitter, in an all-stock deal valuing xAI at $80 billion and X at $33 billion, including $12 billion in debt from Musk’s 2022 Twitter takeover.
Announcing the acquisition on X, Musk called it a strategic step to integrate xAI’s artificial intelligence advancements with X’s 600 million+ active users. He highlighted the synergy between the two entities, stating, “This combination will unlock immense potential.”
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Valuation Trends
While xAI’s valuation has surged from $24 billion in early 2024 to $80 billion, X’s estimated worth has dropped $11 billion since its $44 billion purchase. Despite this, CEO Linda Yaccarino expressed optimism, calling the deal a bright step forward.
AI and Platform Integration
Since its 2023 launch, xAI has used X’s data for model training, with its chatbot Grok embedded in X and now expanding to Telegram. Reports indicate xAI employees had access to X’s infrastructure even before the merger, strengthening their operational ties.
Strategic Vision
With rising AI competition, Musk aims to leverage X’s scale to enhance xAI’s tools, advancing his vision of X as an all-in-one hub for social media, AI, and finance.
