Twitter sold again. The buyer? Elon Musk's xAI. Deal values social media site at $33 billion
Elon Musk said X and xAI combined aim to offer smarter experiences while advancing truth, knowledge, and human progress.
The world’s richest man and close aide of Donald Trump, Elon Musk, announced on Friday that his AI company, xAI, has acquired social media platform X, once known as Twitter, in an all-stock deal valued at $45 billion, including $12 billion in debt, placing xAI’s valuation at $80 billion and X’s at $33 billion.
With this move, Musk aims to integrate artificial intelligence and social media, merging xAI’s cutting-edge technology with X’s vast user base of over 600 million.
Musk said in a post on X that xAI and X's futures are “intertwined” and that the companies will combine data, models, computing power, distribution, and talent. He added that the merged entity would be valued at $80 billion.
“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,” wrote Musk.
The combined company, he said, will not just reflect the world but actively accelerate human progress.
Musk, who heads the US Department of Government Efficiency (DOGE) and is Tesla's CEO, said, “I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning.”Elon Musk’s AI startup, xAI, founded in 2023, recently secured $6 billion in funding, bringing its valuation to $40 billion, sources told Reuters.
In February, Musk, along with a consortium, made a $97.4 billion bid to acquire ChatGPT maker OpenAI. However, OpenAI rejected the offer, stating that the company was not for sale.
How the integration of xAI and X will impact users: Changes to expect
- Enhanced user experiences: Elon Musk has stated that the integration of xAI's advanced AI capabilities with X's extensive user base will lead to smarter and more meaningful interactions. This merger is expected to enhance the way users engage with content and each other, Musk posted on X.
- AI-driven features: Users can expect new AI-powered functionalities, including AI-generated content suggestions, personalized feeds, and improved moderation tools to refine user experiences, Reuters reported.
- Data privacy considerations: Experts have raised concerns that the merger may lead to increased data collection and analysis to train AI models, potentially impacting user privacy, TechCrunch reported.
- Platform evolution: Musk has repeatedly mentioned his vision of turning X into an “everything app,” which could lead to significant changes and service expansions on the platform, The Verge reported.
- Scope for innovation: Industry analysts suggest that this collaboration could result in groundbreaking applications of AI in social media, setting new standards for user engagement and platform capabilities, Bloomberg reported.
