Elon Musk's AI company xAI purchases his social media platform X

Elon Musk's xAI acquired X, valued at $33B, in an $80B stock deal.

: Elon Musk announced that xAI has acquired his social media platform X, formerly known as Twitter, valuing it at $33 billion. The all-stock transaction places xAI at an $80 billion valuation, with X holding $12 billion in debt. Musk's strategic move aims to blend xAI's advanced AI capabilities with X's user base of 600 million globally. The acquisition attempts to unify data, models, and distribution, emphasizing 'truth' and human progress, despite criticisms surrounding X's controversial content changes.

Elon Musk has revealed that his artificial intelligence company, xAI, is set to acquire his own social media platform, X, previously known as Twitter, in a notable all-stock deal. Valued at $33 billion, the social media platform carries a debt of $12 billion. Meanwhile, xAI itself is valued at a striking $80 billion as reported by CNBC. This strategic acquisition is part of Musk's broader vision to integrate AI capabilities with the vast reach of the social platform, which boasts a user base of 600 million globally.

Launched just five months after Musk's acquisition and rebranding of Twitter into X in October 2022, xAI aims to leverage advanced artificial intelligence. The initiative plans to amalgamate data, models, distribution, and expertise between the two companies to foster enhanced and meaningful experiences for billions. Through this merger, Musk envisions not just a reflection of the world but an accelerated human progress, highlighting Musk’s objective towards interlinking AI and its applications with extensive user engagement networks.

Musk articulates on Twitter, "xAI and X’s futures are intertwined," emphasizing the synthesis of capabilities that this union brings forth. He underscores that combining AI with real-time digital communications could unlock comprehensive potential to seek truth and advance collective knowledge. Notwithstanding these ambitions, Musk has faced criticisms over X, being perceived as a stronghold for far-right extremism, with notorious figures like Nick Fuentes and Alex Jones making returns to the platform.

Commentators have questioned whether these strategic endeavors are attempts to rehabilitate the tarnished reputation of X, given the reported decline in user engagement post the 2024 presidential elections. This is compounded by Musk's controversial public statements, including misleading claims regarding Social Security and DOGEcoin, which clash with his publicly stated missions of truth and transparency.

Musk also recognized the "hardcore" efforts of the teams behind both xAI and X, appreciating their dedication as foundational to achieving this milestone. As these companies forge ahead, the challenge remains to align their objectives of truth-seeking with corporate growth amidst ongoing scrutiny and public discourse regarding ethics within digital platforms.

Sources: CNBC, Matt Novak

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