Elon Musk has announced an $80 billion merger between his AI venture xAI and the social media platform X, previously Twitter. This non-cash deal values xAI at $80 billion and X at $33 billion, raising scrutiny regarding their valuations. Musk envisions the merger will enhance resource sharing, enabling terms like deeper AI integration for X and exposure to a vast user base for xAI. Critics question xAI's lack of revenue and suggest the merger may be a strategy to stabilize X's financial standing amid declining advertisement revenues and pressure from investors.
Musk stated the merger would combine AI capabilities with user interaction, unlocking immense potential for smarter experiences while advancing truth and knowledge.
Critics raise concerns over the rationale for the merger, especially given xAI's unclear revenue stream and Musk's attempt to bolster X's valuation amid declining ad revenues.
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