Elon Musk’s AI startup Xai acquired his social media platform X (formerly Twitter) in an all-stock deal. Friday post.
“Xai acquired X in an all-share deal,” Musk said. “The portfolio is worth $80 billion in XAI and $33 billion in x ($45B reduction in debt of $45B).
Musk continues to describe the future of the two companies as “interleaved”. “Today, we have officially taken a step to bring together data, models, computing, distribution and talent,” he added.
The acquisition places X on a highly influential social media platform purchased by Twitter by name before 2022, which is his umbrella for Musk’s AI startup, which he founded in 2023 to compete with OpenAi. While Xai’s products, including its AI Chatbot Grok, were closely integrated into the X platform before this deal, Friday’s acquisition further combined two of Musk’s most compelling companies.
According to publications including the Wall Street Journal, X and XAI stocks will be Exchange shares in a new holding company WSJ called Xai Holdings Corp., and executives of both companies believe it would be easier to raise funds for the combined entity.
Musk also leads Tesla, Space X and Neuralink – noting in his post that the deal values X’s $33 billion (and the corporate value has been reduced by $45 billion due to the company’s $12 billion debt). Musk initially bought X for $44 billion in October 2022 and privatized it. However, valuations have dropped sharply in recent years. Once, faithful Valued at less than $10 billion.
Months since Donald Trump’s presidency took office (Musk has actively run, Musk now serves as the leader of special counsel – X’s valuation risesmainly because investors believe the platform is now more influential. Musk said in a post on Friday that X has more than 600 million active users.
Musk launched XAI in 2023 Since then, from Google Deepmind, Microsoft and Openai and Openai and Build a large number of AI data centers Need to catch up with other border AI developers. To cheer on these efforts, Musk conducted historic fundraising activities, including $6 billion in December, the startup is $45 billion. According to Musk, Xai’s valuation is now higher at $80 billion.
Xai succeeded in the crazy dash to catch up with Openai, Google Deepmind and Anthropic. February, The startup launches Grok 3a boundary AI model that competes with industry-leading AI models to measure mathematics, science and coding.
But Xai’s success didn’t stop Musk from intervening with Openai, a startup he co-founded with Sam Altman. Musk is currently trying to block Openai’s for-profit transition in more than one way (need to be completed to get future funding). Xai’s billionaire owner Openai’s for-profit transition is at the heart of his lawsuit against Openai. Musk also submitted a $97 billion acquisition bid to the Altman startup in February. Openai’s board quickly rejected the idea, but already The market price of Openai assets may have been driven.
One of the main advantages that XAI has over OpenAI and other startups is that it has access to X. XThe large number of positions accumulated over the years provides XAI with significant advantages in AI training data. Additionally, X provides Musk’s AI startup with a huge consumer app to attract users.
Musk has a history of blurring the lines between many of his companies, He was in legal trouble. With Xai’s acquisition of X, the two are now actually one – a move that suggests that X’s real value may lie in driving Musk’s broader AI ambitions.
The story has been updated and provides additional details about the transaction structure.
