Elon Musk’s xAI Merges with X in Significant Acquisition

Elon Musk has announced the acquisition of the social media platform X, formerly known as Twitter, by his artificial intelligence company xAI. The all-stock transaction, announced in a post on X, values xAI at $80 billion and X at $33 billion, factoring in $12 billion in debt. Musk stated that this merger will combine xAI's advanced AI technology with X's extensive user base of over 600 million active accounts.

This announcement comes after an $11 billion decline in X's valuation since Musk purchased Twitter for $44 billion in 2022.

The integration of xAI and X is expected to improve the Grok chatbot, which is already featured on the platform. By leveraging data generated by X users, the merged entity aims to improve AI models, providing users with smarter interactions.

This acquisition also serves as a strategic move to safeguard investors who supported Musk in acquiring X. Questions remain regarding potential changes in leadership and how the merger will be regulated.

Additionally, a report from Fortune highlighted that X's revenue had plummeted by 84% last year, underscoring the challenges the platform faces. As xAI continues to expand its capabilities, the merger positions the combined entity to compete more effectively against established AI firms such as OpenAI and Nvidia.