Elon Musk's artificial intelligence company, xAI, has acquired the social media platform X (formerly known as Twitter) in a significant all-stock deal valued at $33 billion. This acquisition allows the value of xAI to be shared with its co-investors, marking a strategic move to integrate advanced AI capabilities with X's extensive user base.
Musk announced the merger on March 28, stating that the combined valuation of xAI is approximately $80 billion, which factors in $12 billion in debt associated with X. He emphasized the interconnected futures of both companies, highlighting the potential for enhanced user experiences through the integration of data and AI technologies.
This acquisition comes as Musk aims to bolster xAI's offerings, particularly its chatbot Grok, by leveraging the real-time data generated by X's over 600 million active users. The merger is expected to create a powerful synergy between xAI's AI expertise and X's communication platform, potentially reshaping both industries.