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xAI Acquires Social Media Platform X in Multi-Billion Dollar Deal
In a significant move within the tech world, Elon Musk announced Friday the acquisition of X, the social media platform previously known as Twitter, by his artificial intelligence company, xAI. The transaction, valued at $45 billion and encompassing $12 billion in debt, was executed entirely through stock.
Integration of AI and Social Media
Musk stated the integration of the two entities is a strategic alignment for the future. “The trajectories of xAI and X are now interwoven. We are formally merging data, models, computational resources, distribution networks, and talent,” Musk conveyed in a post on the X platform. He further indicated that the consolidated company would possess an estimated valuation of $80 billion.
Requests for Official Statements Remain Unanswered
At the time of reporting, neither representatives from X nor xAI have provided immediate responses to requests for official statements regarding the acquisition.
xAI’s Recent Funding and AI Ambitions
The AI startup, xAI, established by Elon Musk in the preceding year, recently secured $6 billion in funding from investors. This capital infusion, according to sources familiar with the matter, valued xAI at $40 billion. This financial activity underscores the escalating competition within the artificial intelligence sector.
Past Overture to OpenAI
Earlier in February, Musk, along with a consortium, made a substantial offer of $97.4 billion to acquire OpenAI, the company behind the popular ChatGPT. However, OpenAI rebuffed the proposition, asserting they were not seeking a sale.
Expanding AI Capabilities and Infrastructure
As the race to develop advanced artificial intelligence intensifies, xAI has been actively augmenting its data center capabilities to facilitate the training of more sophisticated AI models. Notably, their supercomputer cluster located in Memphis, Tennessee, named “Colossus,” is purported to be the world’s largest, reflecting their commitment to leading-edge AI technology.
Grok-3 Chatbot and AI Competition
In February, xAI unveiled Grok-3, the latest iteration of its AI chatbot, as it seeks to compete with major players in the field such as the Chinese AI company DeepSeek and OpenAI, which is supported by Microsoft. This introduction of Grok-3 highlights xAI‘s ambition to establish itself as a significant contender in the rapidly evolving AI landscape.
Acquisition History of X
Musk finalized the acquisition of X in 2022 for $44 billion, marking the end of its tenure as a publicly traded entity since its initial public offering in 2013. Upon completion of the acquisition, Musk declared “the bird is freed,” signifying a new chapter for the social media platform under his ownership and vision.