Musk ties up xAI, X in $45B deal

Elon Musk’s xAI acquired his social media platform X in a $45 billion all-stock transaction, bringing together two of the entrepreneur’s most high-profile technology focused businesses. Musk confirmed the deal in a post on X, which includes $12 billion worth of debt, stating it would enable the combination of “data, models, compute, distribution and talent” from both companies.The deal values the tech mogul’s AI company at $80 billion and X at $33 billion.

Both X and xAI are privately owned, with overlapping major investors and shared resources.According to BBC, the acquisition could represent an effort to shield investors, who supported Musk’s acquisition of X, from financial losses.In addition, the move could help enhance xAI’s capability to train its AI models.



Sources told Reuters the tie-up is expected to allow for deeper integration of the company’s AI chatbot with X. xAI’s Grok chatbot, a significant feature on X, utilises posts from the social media platform as a key part of its training data.According to Musk, the merger “will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach”.

The acquisition comes just over two years after Musk purchased Twitter for $44 billion, marking a significant shift in the platform’s direction. Despite the challenges faced by X, including a reduction in its workforce and advertiser withdrawals, Musk touted it as “one of the most efficient companies in the world”.The post Musk ties up xAI, X in $45B deal appeared first on Mobile World Live.

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