Musk’s xAI Acquires X, Paving the Way for AI-Driven Social Media Evolution

Elon Musk's AI firm, xAI, has officially bought X (previously Twitter) in an all-stock agreement worth $33 billion.This strategic move strengthens Musk's technology empire by integrating his AI goals with his online social networking site.The combination is intended to speed up the development of Grok, xAI's chatbot rival to OpenAI's ChatGPT.  

Musk revealed the deal on X, noting that xAI is now valued at $80 billion, with X's value down to $33 billion after accounting for debt. He underlined that the two organizations should integrate their data, models, processing capacity, and expertise more closely. However, doubts persist about investor compensation, X's leadership changes, and potential regulatory scrutiny.  

Market observers were surprised by the acquisition, with Paolo Pescatore of PP Foresight describing it as an unexpected move that signals a new chapter in X's stormy history. According to Gil Luria of D.A. Davidson & Co., the $45 billion value (before debt modifications) is no coincidence, as it is $1 billion higher than Musk's initial $44 billion Twitter deal.  

The agreement follows Musk's persistent legal battles with OpenAI, as well as his recent growth of xAI's capabilities, which include the release of the Grok-3 chatbot and the building of a huge supercomputing cluster. Meanwhile, Musk faces legal concerns connected to his 2022 Twitter acquisition.

This article is based on information from Business Today