Elon Musk has recently announced that he sold the social media platform X to his own artificial intelligence company, xAI, in a transaction valued at $33 billion. This all-stock deal highlights Musk’s commitment to merging technological innovation with social media.
Musk shared the news on X, explaining that this move aims to combine the expertise of xAI with the extensive reach of X. He believes this partnership will create significant opportunities by enhancing the platform’s capabilities. According to Musk, the deal positions xAI at a valuation of $80 billion while X is valued at $33 billion.
Since acquiring Twitter for $44 billion in 2022, Musk has made substantial changes to the platform, including a reduction in staff and adjustments to policies related to hate speech and misinformation. He rebranded Twitter to X, emphasizing a new vision for the platform.
In his recent announcement, Musk stated, “xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution, and talent.” He emphasized that the merger will aim to provide smarter experiences for its billions of users, while maintaining a commitment to truth and knowledge.
Currently, it remains unclear how this shift will affect everyday users of X, as xAI has already been utilizing data from user interactions to enhance its AI programs. Subscribers to the platform also have access to an AI chatbot named Grok, offering them additional features in this evolving landscape.
