Elon Musk Merges X (formerly Twitter) with xAI, in A $33 Billion Deal

Elon Musk has made a significant move by selling his social media platform, X (formerly Twitter), to his artificial intelligence company, xAI. The deal, valued at $33 billion, is part of Musk's vision to integrate AI technologies with social media.

This transaction values xAI at $80 billion and X at $33 Billion. 

This is considered a merger since Elon Musk's AI company, xAI, has merged with the social media platform X (formerly Twitter), combining their resources, data, and expertise.

The merger aims to combine X's vast user-generated data with xAI's advanced AI models, potentially revolutionizing how AI is used in social media.

The integration is also expected to enhance user experiences by introducing smarter, AI-driven features and personalized interactions. Musk has emphasized that the futures of xAI and X are "intertwined," and this move could set new standards for the tech industry.

The merger aims to integrate xAI's advanced AI capabilities with X's vast user base, potentially transforming how AI interacts with social media. Musk has described this as a step toward unlocking immense potential by blending AI technology with X's reach.

xAI is a private company primarily owned and controlled by Elon Musk, who founded it in March 2023. While Musk is the majority shareholder and the driving force behind the company, other investors include prominent venture capital firms like Sequoia Capital, Andreessen Horowitz, Fidelity, and BlackRock. These firms have participated in funding rounds that have raised over $12 billion for xAI.

Musk’s Post on X on the merger announcement said, "Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale. X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth."

" xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, computing, distribution, and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. 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. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress."

"I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning."