Elon Musk revealed that the company formerly known as Twitter, now referred to as X, has been taken over by his artificial intelligence firm, xAI, in a deal made entirely with stocks.
In a recent announcement on X, it was disclosed that the merger of the two companies has appraised xAI, the AI firm behind Grok, at an astonishing $80 billion USD. Interestingly, X itself is currently evaluated at $33 billion USD following Elon Musk’s acquisition for $44 billion USD in April 2022. The owner penned, “xAI and X’s destinies are now interconnected. Today marks the beginning of combining our data, models, computational resources, distribution networks, and human capital.”
Musk went on to say, “By merging xAI’s cutting-edge AI skills with X’s extensive network, we can unlock enormous potential. The resulting entity will provide more intelligent and impactful experiences to countless individuals, all while remaining committed to our founding principles of pursuing truth and fostering knowledge advancement. This collaboration will create a platform that not only mirrors the world but also propels human development at an accelerated pace.
According to Emerge’s report, Fidelity Investments valued their X stake in October 2024 at approximately $9.4 billion USD, estimating the platform’s total value. Although the company’s valuation increased by year-end, it was still 77% lower than the initial purchase price. The specifics about Elon Musk’s $33 billion USD valuation were not disclosed. Interestingly, while Musk is selling X to himself in this acquisition, the merger with xAI could potentially attract new investors, boost its valuation, and present a fresh narrative beyond Twitter’s tumultuous takeover – particularly given its current $12 billion USD debt.
In a deal involving only shares, @xAI has taken over @X. This merger puts the estimated value of xAI at $80 billion and that of X at $33 billion, with a reduction of $12 billion due to X’s existing debts.
Over the past two years, xAI has swiftly established itself as a prominent player among global AI labs. It has been constructing advanced models and data facilities, which is why it now stands out in the field.
— Elon Musk (@elonmusk) March 28, 2025
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2025-03-30 06:25