Elon Musk’s xAI Acquires X to Integrate AI and Social Media

Elon Musk announced that his AI company, xAI, has acquired his social media platform X (formerly Twitter) in an all-stock deal. The transaction values xAI at $80 billion and X at $33 billion, significantly lower than the $44 billion Musk originally paid for Twitter in 2022. Musk stated that the move would combine the two companies’ data, computing power, and talent to enhance AI capabilities. The acquisition could also serve to protect investors who backed Musk’s purchase of X. xAI has been utilizing social media data from X to train its AI models, including its chatbot Grok. Analysts suggest this move aligns with the growing investment trends in AI and computing. Meanwhile, Musk remains in a legal dispute with OpenAI, a company he co-founded, accusing it of deviating from its original non-profit mission. Musk previously attempted to acquire OpenAI for $97.4 billion, but his bid was rejected. In parallel to his business activities, Musk has become increasingly involved in politics, aligning with Donald Trump’s administration and contributing to a controversial political campaign in Wisconsin. The legal implications of his financial involvement in the state’s elections are currently under review.