Elon Musk’s synthetic intelligence startup xAI has acquired his social media firm X, previously Twitter, in an all-stock deal valued at $33 billion.
What Occurred: On Friday, Musk introduced that xAI had formally acquired X, with the deal valued at $45 billion, together with $12 billion in present debt.
The transfer combines Musk’s two high-profile ventures, linking xAI’s quickly growing AI mannequin Grok with X’s huge person information and content material distribution community.
“xAI and X’s futures are intertwined,” Musk posted on X. “Right now, we formally take the step to mix the information, fashions, compute, distribution and expertise.”
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Why It is Necessary: In response to Musk, the acquisition raised the valuation of the merged entity to $80 billion. The billionaire acquired Twitter in 2022 for $44 billion and rebranded it as X as a part of a broader imaginative and prescient to rework it into an “every little thing app.”
Some particulars of the deal stay unclear, together with investor approval and the construction of shareholder compensation. Musk’s xAI, launched in 2023, lately raised $6 billion at a $40 billion valuation and launched Grok-3, a chatbot meant to rival OpenAI’s ChatGPT.
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