Inside Musk’s Bold Move: xAI Acquires X, the Social Media Giant!

Elon Musk has announced that his AI company, xAI, is acquiring social media platform X, previously known as Twitter. In a recent post on X, Musk revealed that this all-stock deal values xAI at around $80 billion and X at approximately $33 billion. Notably, Musk bought Twitter for $44 billion just last year.

Musk emphasized that the futures of xAI and X are linked. He expressed that the merger would allow them to combine their resources, leading to smarter and more meaningful experiences for users. xAI has already been using data from posts on X to train its models. A well-known feature of their platform is a chatbot named Grok.

Analyst Paolo Pescatore, founder of PP Foresight, noted that this strategy aligns with the growing trend of investments in AI and computing resources. Musk’s move seems to be a plan to safeguard investors who previously supported his acquisition of X.

Interestingly, Musk is currently engaged in a legal battle with OpenAI, the company he co-founded in 2015. He recently filed a lawsuit against OpenAI, claiming they have strayed from their original mission by transitioning into a for-profit model. In contrast, OpenAI is reportedly finalizing a significant $40 billion funding round with SoftBank, contingent on restructuring.

Musk’s disputes with OpenAI have drawn criticism, with some suggesting his legal actions stem from a desire for control over the company. Earlier this year, he attempted an unsolicited $97.4 billion takeover of OpenAI, which was dismissed by CEO Sam Altman.

This evolving landscape reflects not only Musk’s increasing interest in technology and business strategy but also his growing involvement in politics. He has been collaborating with Donald Trump’s administration, advocating for spending cuts, while also contributing significantly to political campaigns in Wisconsin. This dual focus on business and politics has sparked debate about the implications of his influence in both arenas.

For the latest updates on AI developments, check this report from the Wall Street Journal.

Check out this related article: Academy Responds to Over 700 Voter Outcry: Why ‘No Other Land’ Director Hamdan Ballal Wasn’t Recognized