Investing.com -- Elon Musk's AI firm xAI announced the acquisition of his social media platform X (formerly Twitter) in a significant all-stock deal. The transaction values X at $33 billion, excluding X's $12 billion debt, and the combined company at $80 billion.
In 2022, Musk acquired Twitter for $44 billion.
This move marks a major step for xAI, which, since its inception two years ago, has quickly risen to prominence as one of the top AI labs globally.
xAI has been recognized for its rapid development of AI models and construction of data centers, both in terms of speed and scale. Meanwhile, X has established itself as a leading digital platform, boasting over 600 million active users who rely on it as a real-time source of information. Over the past two years, X has undergone a transformation, emerging as an exceptionally efficient company poised for scalable growth.
The merger of xAI and X is poised to create a powerhouse in the tech industry. Musk emphasized that the futures of both companies are deeply connected. With the official consolidation of their resources, including data, models, computing power, distribution networks, and talent, the combined entity is expected to leverage xAI's cutting-edge AI expertise alongside X's extensive user base.
Musk stated that this integration is set to deliver smarter and more impactful experiences to billions of people worldwide. He stressed that the combined company would remain committed to its fundamental mission of pursuing truth and fostering the advancement of knowledge. The goal is to create a platform that not only mirrors the world but also actively contributes to human progress.
In his announcement, Musk, also CEO of Tesla (NASDAQ:TSLA), expressed gratitude for the unwavering commitment of the teams at both xAI and X, which has been instrumental in reaching this milestone. He concluded by thanking all partners and supporters for their ongoing collaboration, signaling optimism for the future following this landmark acquisition.