Elon Musk Merges xAI with X in $45 Billion Deal

Elon Musk's xAI company has acquired the social media platform X, previously Twitter, for $33 billion in stocks, amounting to a $45 billion valuation with debt. This consolidation aims to integrate their data and technology, facilitating xAI's AI model training while valuing the combined entity at $80 billion.

Elon Musk's artificial intelligence powerhouse, xAI, has strategically acquired the social media giant X, formerly known as Twitter, for a staggering $33 billion in an all-stock deal. With an additional $12 billion in debt, the total valuation of this merger soars to $45 billion, marking a significant consolidation within Musk's business ventures that also include Tesla and SpaceX.

Notably, the $45 billion figure is just above the 2022 take-private transaction value for Twitter, potentially allowing Musk to share the benefits with xAI's co-investors. The announcement was made on X, positioning the newly formed entity's valuation at a hefty $80 billion, highlighting its potential in the competitive tech landscape.

Despite the grand scale of the merger, specifics such as investor approval and compensation remain undisclosed. As xAI continues to expand its data center capabilities to challenge competitors like OpenAI, the merger represents a pivotal step in harmonizing data, models, and talent to bolster their AI advancements.

(With inputs from agencies.)