Elon Musk announced a significant corporate merger Friday via a post on his social media platform X, revealing that his artificial intelligence startup xAI had acquired X in an all-stock transaction. Musk stated:
xAI has acquired X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
The deal merges two of Musk’s ventures and is aimed at harnessing the strengths of both—the rapid AI innovation at xAI and the global communication infrastructure of X.
Musk emphasized the strategic value of the acquisition, describing the platform’s role in the global information ecosystem: “X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth.” The integration will bring together massive data resources, machine learning capabilities, and a large-scale user base.
The billionaire tech entrepreneur outlined how the merger would unlock new capabilities: “xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
In describing the future of the combined operation, Musk projected a bold vision of progress, stating:
The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.
Musk also acknowledged the effort of his teams, thanking employees at both companies and expressing optimism: “This is just the beginning.”
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