Elon Musk announced that his AI startup, xAI, has acquired his social media platform, X, in an all-stock transaction valued at $33 billion. Musk stated that the future of xAI and X are intertwined, combining data, models, compute, distribution, and talent. X recently raised $1 billion from investors, valuing it at $44 billion, similar to the valuation when Musk took the platform private in 2022.
Musk launched xAI in 2023 and rolled out Grok, an AI-powered chatbot integrated into X. Grok has been positioned as an anti-“woke” AI that seeks truth, though it has shown disagreements with Musk on various issues. The acquisition aims to combine xAI’s advanced AI capabilities with X’s massive reach to create smarter, more meaningful experiences for users while advancing knowledge and human progress.
Investors, including major Wall Street firms and top chip companies, have shown interest in xAI, with a recent funding round valuing the company at $45 billion. Reports suggest that xAI is considering another fundraising round that could value the company at $75 billion. The acquisition is seen as part of the broader boom in AI companies, with xAI positioned to deliver innovative AI-powered experiences to billions of users through its integration with X.
As a developing story, updates on the acquisition and its implications are expected. Jason Abbruzzese and Steve Kopack from NBC News Digital are covering the latest developments in the tech and business world related to the acquisition.
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