xAI, Elon Musk's AI agency, merely purchased X, Elon Musk's social media agency

Elon Musk’s AI agency, xAI, has purchased X, according to a post shared by Musk. Aside from their comparable names and proprietor, the companies are already linked by xAI’s chatbot Grok, which is built-in into X.

X was acquired by xAI by an all-stock transaction. “The combo values xAI at $80 billion and X at $33 billion ($45B a lot much less $12B debt),” Musk writes. “xAI and X’s futures are intertwined.” The companies plan on combining “information, fashions, compute, distribution and experience,” using X’s attain as a social platform to unfold “xAI’s superior AI performance.” The put up presents little component previous that, nevertheless the motivations could be as financial as they’re wise.

@xAI has acquired @X in an all-stock transaction. The combo values xAI at $80 billion and X at $33 billion ($45B a lot much less $12B debt).

Since its founding two years up to now, xAI has shortly develop into certainly one of many principal AI labs on the earth, setting up fashions and information amenities at…

— Elon Musk (@elonmusk) March 28, 2025

X, then Twitter, was acquired by Musk in 2022 for $43 billion. xAI, like many principal AI corporations, has been raising money as normally and as shortly as doable. Combining the two corporations, other than the fuzzy potential benefits social media posts might need for teaching AI, helps ease a couple of of the debt that Musk took on taking Twitter private. The billionaire pulled an identical stunt in 2016 with Tesla, when the automotive maker merged with SolarCity for $2.6 billion.

This textual content initially appeared on Engadget at https://www.engadget.com/social-media/xai-elon-musks-ai-company-just-purchased-x-elon-musks-social-media-company-221503759.html?src=rss

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