Elon Musk announced that his AI company, xAI, has acquired his social media platform X, formerly Twitter, in an all-stock transaction valuing xAI at $80 billion and X at $33 billion. This merger aims to integrate their resources toward delivering smarter experiences. Analysts view this move as timely due to rising investments in AI and data centers. Musk's ongoing legal disputes with OpenAI, which he co-founded, also influence this decision, as it comes amid concerns regarding control over AI direction and aligned interests with investors in both companies.
"xAI and X's futures are intertwined," Musk wrote on X Friday. "Today, we officially take the step to combine the data, models, compute, distribution and talent."
"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," Musk wrote.
"The move appears sensible, considering the current trend of increased investments in AI, data centres, and computing," said analyst Paolo Pescatore, founder of PP Foresight.
Musk paid $44 billion for Twitter in 2022, but the all-stock transaction values X at $33 billion while xAI is at $80 billion.
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