Elon Musk’s AI company, xAI, has bought X (formerly Twitter) in a deal worth $33 billion. This move allows Musk’s AI firm to share its value with investors and could help improve its chatbot, Grok.
Musk announced the deal on X, saying it will combine xAI’s data, models, and talent with X’s platform. He also stated that xAI is now valued at $80 billion. However, details about leadership changes and possible government review remain unclear.
Saudi investor Prince Alwaleed bin Talal, a major investor in X and xAI, supported the deal, expecting his investment to grow to $4–$5 billion. Experts note that the purchase price, including debt, is slightly higher than when Musk bought Twitter in 2022.
xAI, launched less than two years ago, is competing with OpenAI and other AI firms. Musk has also taken legal action against OpenAI for shifting from a non-profit to a for-profit company. Meanwhile, xAI is expanding its AI capabilities with a massive supercomputer in Tennessee.
By owning X, Musk can use the platform to distribute xAI products and gather real-time data from users. Since Musk took over Twitter, the platform has struggled with advertiser losses, but brands have started returning. Banks that financed Musk’s Twitter purchase have now sold their loans due to rising interest in AI investments.
Recently, a judge rejected Musk’s attempt to dismiss a lawsuit accusing him of misleading Twitter investors before his purchase.
Source: reuters
