Elon Musk has sold his social media platform, X (formerly Twitter), to his artificial intelligence company, xAI, for $33 billion in stock. He stated that this merger will combine xAI’s AI capabilities with X’s large user base to improve experiences.
The deal values xAI at $80 billion and X at $33 billion. Musk bought X in 2022 for $44 billion and made major changes to its policies and staff. He launched xAI a year later.
The new company will share data, models, and distribution to enhance user experiences. xAI already uses X’s data to train AI models, and X users can access xAI’s chatbot, Grok.
Reactions to the merger are mixed. Some investors, like Prince Alwaleed bin Talal, support the move. However, some former executives doubt its success and warn of a possible AI market bubble.
