Elon Musk has announced that xAI has acquired X in an all-stock transaction. The arrangement values xAI at $80 billion and X at $33 billion ($45 billion less $12 billion in debt), creating a powerhouse that could reshape the AI and social media industries simultaneously.
Since launching just two years ago, xAI has quickly established itself among the elite AI research organizations globally. The company has built AI models and data centers at what Elon describes as “unprecedented speed and scale,” positioning it as a formidable competitor in the increasingly crowded AI development space.
Meanwhile, X has undergone substantial transformation during the same period. The platform now serves more than 600 million active users who, according to Elon, “go to find the real-time source of ground truth.” X has reportedly become “one of the most efficient companies in the world,” setting the stage for future growth opportunities.
“xAI and X’s futures are intertwined,” Elon stated in his announcement. The merger will combine data, models, computing resources, distribution channels, and talent from both organizations. Integration aims to leverage xAI’s technical capabilities with X’s massive user base.
The combined entity intends to create “smarter, more meaningful experiences” while maintaining a focus on “seeking truth and advancing knowledge.” Elon emphasized that this strategic alignment won’t just reflect current conditions but will “actively accelerate human progress.”
Elon credited the “hardcore dedication” of teams at both xAI and X for reaching this milestone. “This is just the beginning,” he noted, suggesting ambitious plans ahead for the newly formed technology giant.
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