In a strategic move to integrate artificial intelligence with social media, Elon Musk’s AI startup, xAI, has acquired the social media platform X (formerly known as Twitter) in an all-stock transaction. This deal values X at $33 billion, including $12 billion in debt, mand xAI at $80 billion, culminating in a combined valuation of $113 billion.
Elon Musk emphasized the synergy between the two entities, stating that their “futures are intertwined.” The merger aims to leverage xAI’s advanced artificial intelligence capabilities with X’s extensive user base to enhance user experiences and drive innovation.
The acquisition is expected to facilitate the integration of xAI’s products, such as the AI chatbot Grok, into the X platform. This integration seeks to create more intelligent and meaningful interactions for users, positioning the combined entity to compete more effectively in the rapidly evolving AI landscape.
Financial advisors for the deal include Morgan Stanley and Sullivan & Cromwell. The merger has been welcomed by key investors, including Prince Alwaleed bin Talal, who hold significant stakes in both companies.
Prior to Twitter’s acquisition, in 2019 Elon Musk tweeted that he sees no good in Twitter. However, few years on he acquired the selfsame platform for a sum of $44 billion. And since then he has achieved immense good off the Twitter platform including helping Donald Trump to win the 2024 presidential elections in the US.
Despite facing revenue challenges since Musk’s acquisition of X in 2022, the platform is projected to see advertising growth under his leadership. The consolidation of xAI and X is anticipated to streamline operations and unlock new opportunities in the AI and social media sectors.
