In an exciting announcement on Friday, billionaire entrepreneur Elon Musk revealed that his company xAI has successfully acquired the social media platform formerly known as Twitter, now called X. The deal was made through a stock exchange valued at $33 billion, while the overall value, including $12 billion in debt, rises to $45 billion.
Strengthening the Connection Between xAI and X
Musk stated in a post on X, “The future of xAI and X is closely intertwined. Today, we take an official step toward integrating data, models, computing, distribution, and talent.” He indicated that the expected value of the merged company could reach $80 billion.
xAI’s Rapid Funding and Expansion
According to insider sources, the newly-established xAI has recently raised $6 billion from investors, boosting its valuation to $40 billion. Founded in 2023, xAI has quickly risen in the artificial intelligence sector.
Musk’s Acquisition of Twitter and Its Transformation to X
Prior to this acquisition, Musk purchased Twitter in a deal estimated at around $44 billion in late 2022, which involved significant cost reductions, and he swiftly rebranded it as X.
The Future Vision of xAI
Musk launched xAI with the primary goal of “understanding the fundamental nature of the universe.” The company seeks to distinguish itself in the field of artificial intelligence, facing fierce competition from OpenAI, which Musk co-founded in 2015 as a nonprofit research lab. However, Musk has recently been embroiled in legal and public disputes with OpenAI and its CEO Sam Altman concerning the company’s future direction.
