The startup of Elon Musk, XAI, acquired its social media platform X, formerly known as Twitter, in an All-Stock agreement, he announced in an article on X Friday.
“XAI has acquired X in an All-Stock transaction,” said Musk. “The combination varies xai at $ 80 billion and X at $ 33 billion ($ 45 billion in debt of more than $ 12 billion).”
He then described the future of the two companies as “intertwined”, adding: “Today, we officially cross the measure to combine data, models, calculation, distribution and talents”.
The Place X acquisition – The very influential social media platform that Musk bought in 2022 under his old name, Twitter – firmly under the aegis of the Startup of Musk’s AI, which he founded in 2023 to compete with Openai. While XAI’s products, including its AI Grok cat-cat, were closely integrated into the X platform before this agreement, Friday acquisition also combines two of Musk’s most influential companies.
Musk notes in his article that this transaction values X at 33 billion dollars (lowered by an evaluation of the company of $ 45 billion due to the $ 12 billion in the company). Musk initially bought X for $ 44 billion in October 2022, however, the evaluation has radically balanced in recent years. At one point, Fidelity evaluated X at less than $ 10 billion.
During the months following the inauguration of President Donald Trump, for whom Musk campaigned to aggressively, the X evaluation increased, largely because investors think that it is more influential now. Musk said in his article on Friday that X has more than 600 million active users.
Meanwhile, XAI’s assessment has skyrocketed in recent years. During the only two years since its foundation, Musk has managed to strengthen XAI to be a border AI laboratory, frequently releasing models and products that compete with Openai, Anthropic and Google.
In February, XAI would have been in talks to obtain an additional $ 10 billion funding for an assessment of $ 75 billion. However, Musk now says that the assessment of his AI startup is now $ 80 billion.
One of the main advantages that XAI has on other startups is its access to X data. The big post body that X has accumulated over the years gives XAI a significant advantage in the race for AI training data. In addition, Musk previously gave the Grok cat access to real-time news updates from publications on the X platform. It seems likely that the two products, X and Grok, will not be integrated closely than after this acquisition.
This is a story in development… Come back for updates.
