Elon Musk has announced the transfer of social media platform X to his Artificial Intelligence startup, xAI. The all-stock deal between the two companies is valued at $33 billion, driving the valuation of xAI to $80 billion. The merger aims to integrate xAI’s AI capabilities with X’s massive user base to create an advanced AI.
Elon Musk Prepares for the Future with xAI
In a statement shared on X, Musk, who controls both privately held companies, said the merger would integrate xAI’s advanced AI capabilities with X’s vast user base and distribution network, unlocking new opportunities for AI-driven innovation.
Musk wrote: “Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale. X is the digital town square where more than 600 million active users go to find real-time sources of ground truth. The merger brings together xAI’s expertise in artificial intelligence with X’s global reach, aiming to create a platform that delivers smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.”
Elon Musk further stated that the integration of xAI and X is set to reshape the AI technologies and social media, promising to deliver enhanced, meaningful experiences to billions worldwide while propelling human progress forward.
The billionaire added: “xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”
Elon Musk expressed gratitude to employees at both companies for their dedication, emphasizing that this was only the beginning of their combined efforts, as reported by BBC.
Elon Musk-owned satellite internet service provider, Starlink, has become the second-largest internet service provider (ISP) in Nigeria, according to new data from the Nigerian Communications Commission (NCC). Despite its expensive pricing, Starlink’s user base has more than doubled.
