In a groundbreaking move, Elon Musk’s artificial intelligence venture, xAI, has officially acquired social media giant X in an all-stock transaction. The acquisition pegs X’s value at $33 billion and further cements Musk’s vision of intertwining AI with the digital conversation hub.
Musk announced the news on X, stating:
“@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt). 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.”
The deal strengthens Musk’s ambition of shaping AI-driven interactions, merging cutting-edge technology with a platform hosting over 600 million active users. He emphasized the strategic synergy, stating:
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution, and talent.”
Revolutionizing AI and Social Media
Founded in 2023, xAI quickly rose to prominence, introducing Grok, an AI chatbot integrated into X. Grok provides real-time insights, engages in discussions, and positions itself as a response to what Musk describes as “woke AI”. The company has been at the forefront of developing AI systems designed for truth-seeking, while X continues its transformation into one of the most efficient tech entities.
Musk envisions this merger as a catalyst for the future of intelligent digital interactions, stating:
“X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth.”
Strategic Growth and Industry Impact
The acquisition follows significant financial developments for both companies. X secured $1 billion in funding last year, valuing it at $44 billion, while xAI raised capital from BlackRock, Fidelity, Morgan Stanley, Sequoia Capital, Nvidia, and AMD, pushing its valuation to $45 billion in December. Reports indicate that xAI is gearing up for another funding round, potentially boosting its worth to $75 billion.
The merger aims to harness xAI’s AI expertise with X’s expansive network, fostering an era of AI-driven, meaningful experiences for billions of users worldwide. Musk highlighted the profound implications of this integration, declaring:
“This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. 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. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”
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