Elon Musk has announced that his AI venture, xAI, has officially acquired X, the social media platform formerly known as Twitter. In a post on X this past Friday, Musk revealed that the all-stock transaction values xAI at $80 billion (£61.8 billion), while X is valued at $33 billion. Musk originally paid $44 billion for Twitter in 2022.

 

Strategic Move to Strengthen Both Ventures

Musk shared that the acquisition is a strategic step aimed at combining the data, models, compute, distribution, and talent from both companies. This move reflects Musk’s belief that the futures of xAI and X are closely intertwined, enabling the combined company to deliver smarter and more meaningful experiences to billions of people.

By consolidating resources from both ventures, Musk aims to enhance the core mission of both companies: seeking truth and advancing knowledge. xAI has been using data from X posts to train its AI models, with its prominent chatbot Grok being one of the key features integrated into the platform.

 

A Win for Investors

The deal may also be seen as a protective measure for investors who had supported Musk in his purchase of Twitter (now X) by safeguarding their interests in the face of potential losses. Both X and xAI are privately held entities, and they share significant investors and resources, further solidifying their collaboration.

 

AI and Data: A Growing Focus in International Business

Industry analyst Paolo Pescatore, founder of PP Foresight, commented that this acquisition “appears sensible, considering the current trend of increased investments in AI, data centres, and computing.” The integration of xAI and X is expected to streamline operations and offer more advanced AI-powered features within the social media space, which could have a major impact on the international business landscape.

 

Legal Battles and Controversies

Musk’s acquisition of X and xAI comes amidst ongoing legal disputes, particularly with OpenAI, the company Musk co-founded in 2015. Last year, Musk sued OpenAI and its CEO, Sam Altman, accusing them of deviating from the company’s original mission and pushing to transition it into a for-profit entity.

Reports from The Wall Street Journal suggest that OpenAI is finalizing a $40 billion funding round with SoftBank, a Japanese conglomerate. This funding is reportedly contingent upon OpenAI completing its restructuring into a for-profit model, further fueling tensions between Musk and the company.

Earlier this year, Musk’s consortium made a $97.4 billion bid to acquire OpenAI, which was ultimately rejected by Altman, who emphasized that OpenAI was not for sale.

 

Musk’s Growing Political Influence

Aside from his business ventures, Elon Musk has increasingly become involved in politics, serving as a prominent figure in President Donald Trump’s administration. Musk has been instrumental in efforts to slash federal spending and has made significant contributions to state-level political races. This weekend, he is in Wisconsin, where he has contributed millions of dollars to support a state Supreme Court race.

However, Musk’s political donations have drawn attention, with Wisconsin’s attorney general requesting a court to block Musk’s plan to distribute $1 million checks to voters ahead of the election.

 

Conclusion

The acquisition of X by xAI marks a significant shift in the social media and AI landscape, with Elon Musk once again making waves in both international business and the tech industry. As these developments unfold, both Musk’s ventures and his political engagement are set to continue shaping the future of global business.

 

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