Elon Musk is making waves again with a bold business move: his AI company, xAI, is taking over the social media platform X, which you might know better as Twitter, in an all-stock deal. According to CNBC, this transaction puts xAI’s value at a whopping $80 billion and X at $33 billion.
Musk broke the news on Twitter, highlighting how this merger will combine xAI’s top-notch AI tech with X’s massive user base of 600 million active users. He sees X as a “real-time source of ground truth,” a place that mirrors and speeds up human progress through its quest for knowledge and truth.
This isn’t Musk’s first rodeo with X. Just over two years ago, he bought Twitter for about $44 billion in October 2022 and rebranded it as X. Fast forward to March 2023, and xAI was born to lead the charge in AI innovation.
While Musk is focused on the synergy and growth potential of this new venture, X has faced its share of criticism. It’s been called out for becoming a haven for far-right extremism, with controversial figures like Nick Fuentes and Alex Jones making a return, stirring debates about the platform’s direction.
Despite these challenges, Musk is optimistic. He believes the merger will unlock new possibilities by merging data, computational power, and distribution channels. He also praised the “hardcore dedication” of the teams at both xAI and X, underscoring their commitment to innovation and progress.
There are hurdles to overcome, especially when it comes to public perception and X’s role in digital conversations. But Musk remains confident about the transformative potential of aligning these two powerhouses strategically.
