In an unprecedented move, Elon has sold the X social media platform (formerly Twitter) to his own artificial intelligence company, xAI, in a $33 billion, all-stock deal, according to a post made by the billionaire on X. Both Companies are privately owned, so they don’t need to make their financials to the public during a deal.
Informing about the deal, Elon Musk took to X and said that this move will “unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.” According to Musk, the deal values X at $33 billion and xAI at $80 billion. Musk, who is known for building two of the most successful private brands in their respective industries, Tesla and SpaceX, bought the company in 2022 in an all-cash $44 billion deal, gutted its staff and changed many things, including hate speech policies, misinformation and user verification.
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In short, what Elon hopes is that the merger will ensure that xAI’s Grok will have a vast data set for training purposes, making it better than other Large language Models like ChatGPT and Gemini. As Elon mentioned on the X post, “The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.”
