Musk Announces xAI's Acquisition of X: Birth of a New AI Titan Worth Hundreds of Billions
Elon Musk merges xAI ($80B) with X ($33B) in $45B stock deal to boost AI ambitions.
"AI Disruption" Publication 5400 Subscriptions 20% Discount Offer Link.
On Friday local time, Elon Musk announced that his AI startup xAI has merged with his social network X (formerly Twitter).
According to the statement, the merger was an all-stock transaction. xAI was valued at $80 billion, while X was valued at $33 billion.
However, the X platform still carries $12 billion in debt, bringing the total cost of the xAI transaction to $45 billion.
"Choosing $45 billion is not a coincidence," Gil Luria, an analyst at D.A. Davidson, told the media. "This is $1 billion more than the 2022 privatization deal for Twitter (now X)," and Musk can share the value of xAI’s business with X’s co-investors.