Elon Musk announced an all-stock acquisition of his social media platform, X, by his artificial intelligence startup xAI for $33 billion, valuing X at $45 billion if its debt is considered. The deal combines the resources of xAI and X, which include overlapping technology and personnel. This strategic merger aims to enhance both companies' AI capabilities, placing xAI's new valuation closer to rival OpenAI. Musk, who bought X for $44 billion in 2022, has faced challenges with the platform, leading to a significant drop in its value since his takeover.
Musk announced the acquisition Friday evening, stating it valued xAI at $80 billion and X at $33 billion.
This acquisition combines xAI's technology with X's data, models, compute, distribution, and talent.
Musk's acquisition aims to synergize efforts between xAI and X, potentially enhancing their respective AI capabilities.
The venture places Musk's companies in competitive proximity to leading AI firm OpenAI.
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