Elon Musk Transfers News Platform X to xAI in $45 Billion Stock Deal
Elon Musk has merged his AI company xAI with his social media platform X, previously known as Twitter, in a significant stock transaction.
In a notable corporate maneuver, Elon Musk has transferred control of the news platform X, branded from Twitter, to his artificial intelligence company, xAI, in a stock transaction valued at $45 billion, which includes existing debts.
This development was announced by Musk on Friday.
Musk originally acquired Twitter in 2022 for $44 billion, subsequently rebranding it as X. The merger emphasizes the intertwined futures of xAI and X, according to Musk, who stated that the integration of their data, models, and talents would create a synergistic entity.
The consolidated firm is projected to hold an overall valuation of approximately $80 billion.
As X becomes part of xAI, it is expected that this will simplify the legal use of X's content for training xAI's artificial intelligence model named Grok, placing xAI in a competitive position alongside firms such as OpenAI, the developer behind ChatGPT.
Neither X nor xAI is publicly traded, thus exempting them from the necessity to issue formal statements regarding the acquisition.
xAI, launched in 2023, is reported to have secured $6 billion from investors in its latest funding round, which has assigned the company a valuation of $40 billion.
Earlier this year, Musk attempted to acquire OpenAI through a consortium with a proposed offer of $97.4 billion; however, OpenAI declined the bid, affirming its independence.
Amid intensifying competition in the artificial intelligence sector, xAI has been expanding its data center capabilities to facilitate the training of more advanced AI models.
This development was announced by Musk on Friday.
Musk originally acquired Twitter in 2022 for $44 billion, subsequently rebranding it as X. The merger emphasizes the intertwined futures of xAI and X, according to Musk, who stated that the integration of their data, models, and talents would create a synergistic entity.
The consolidated firm is projected to hold an overall valuation of approximately $80 billion.
As X becomes part of xAI, it is expected that this will simplify the legal use of X's content for training xAI's artificial intelligence model named Grok, placing xAI in a competitive position alongside firms such as OpenAI, the developer behind ChatGPT.
Neither X nor xAI is publicly traded, thus exempting them from the necessity to issue formal statements regarding the acquisition.
xAI, launched in 2023, is reported to have secured $6 billion from investors in its latest funding round, which has assigned the company a valuation of $40 billion.
Earlier this year, Musk attempted to acquire OpenAI through a consortium with a proposed offer of $97.4 billion; however, OpenAI declined the bid, affirming its independence.
Amid intensifying competition in the artificial intelligence sector, xAI has been expanding its data center capabilities to facilitate the training of more advanced AI models.
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