Elon Musk announced on Friday that his artificial intelligence startup, xAI, has officially acquired X, formerly known as Twitter, in a move that consolidates their shared resources and investor base.
Musk, who purchased Twitter for $44 billion in 2022, revealed that the all-stock transaction values xAI at $80 billion and X at $33 billion. He stated that the merger would enhance AI development by integrating data, computing power, and distribution networks.
“xAI and X’s futures are intertwined,” Musk wrote on X. “Today, we officially take the step to combine the data, models, compute, distribution, and talent.”
Analysts suggest the acquisition could be aimed at protecting investors who helped finance Musk’s takeover of X. The two companies already share significant investors and resources, with xAI leveraging X’s social media data to train its AI models, including its chatbot, Grok.
Tech analyst Paolo Pescatore noted that the deal aligns with broader industry trends. “The move appears sensible, considering the current trend of increased investments in AI, data centers, and computing,” he said.
The acquisition comes as Musk continues his legal battle against OpenAI, the company he co-founded in 2015. Musk has accused OpenAI and its CEO, Sam Altman, of deviating from their original nonprofit mission and transitioning into a for-profit entity.
Meanwhile, OpenAI is reportedly finalizing a $40 billion funding deal with Japan’s SoftBank, contingent on its restructuring. Musk previously attempted a $97.4 billion takeover bid for OpenAI, which Altman rejected.
Musk’s business and political interests have increasingly overlapped, as he now plays a key role in former President Donald Trump’s administration, advocating for federal spending cuts. He is currently in Wisconsin, where he has contributed millions to a state Supreme Court race.
In a controversial development, Wisconsin’s attorney general has asked a court to block Musk from distributing $1 million checks to voters ahead of the election.
The xAI-X merger marks another bold move in Musk’s efforts to shape the future of AI and social media while navigating political and legal challenges.
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