The Xai artificial intelligence company of tech billionaire Elon Musk has acquired social media company X, previously known as Twitter, for $33 billion (30.5 billion euros).
Musk announced the deal in X’s post, saying, “Xai is valued at $80 billion and X is valued at $33 billion ($45 billion less debt).
What did Musk say about this deal?
“The future of Xai and X are intertwined,” he wrote. “Today, we are taking a step forward to officially combining data, models, calculation, distribution and talent. This combination unlocks immense possibilities by blending Xai’s advanced AI capabilities and expertise with X’s big reach.”
Many of the details of the transaction remained unknown. Both companies are private and therefore do not need to make their finances public.
Also, it is not clear whether X user movement changes anything.
Musk bought the X called Twitter in 2022 for $44 billion.
Following the acquisition, he fired most of his staff, changed his policy on content moderation and user verification, renamed him X. The controversial content policy has led advertisers to flee the platform, causing a rapid decline in revenue.
Strengthening AI competition
Musk released Xai a year later.
In February, Xai introduced Grok-3, the latest iteration of chatbots. It is about to compete with Openai, backed by Chinese AI company Deepseek, manufacturers of ChatGpt, and Microsoft.
Amidst increasing competition in the AI space, Xai is increasing the capacity of its data centers to train more advanced models.
Musk also attempted a $97.4 billion attempt in February at a consortium to acquire Openai.
However, the bid was rejected.
Musk, the world’s wealthiest man who serves as CEO of Tesla and SpaceX, has become a powerful figure in Washington since Donald Trump returned to the White House.
He oversees so-called government efficiency, or the administration’s cost-cutting efforts as head of Doge.
Edited by: John Silk
