MercoPress. South Atlantic News Agency

Musk launches daring AI merger involving X

The move is expected to enhance user experiences and advance truth-seeking and human progress, Musk argued

Elon Musk’s artificial intelligence startup, xAI, has acquired his social media platform, X, in an all-stock deal valuing the latter at US$ 33 billion, the South African-born tycoon announced. The acquisition merges two of Musk’s prominent ventures, combining xAI’s AI expertise—bolstered by its chatbot Grok and a massive GPU supercomputer—with X’s vast user reach.

The entrepreneur insisted this move would enhance user experiences and advance truth-seeking and human progress, though financial details remain undisclosed as both companies are private. X recently raised US$ 1 billion, valuing it at US$ 44 billion, matching the price Musk paid to take it private in 2022 as Twitter, while xAI, launched in 2023, has seen its valuation rise to US$ 45 billion after investments from firms like BlackRock and Nvidia, with talks of a potential US$ 75 billion valuation.

“This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach,” Musk wrote. “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.”

“xAI and X’s futures are intertwined,” he also pointed out. “Today, we officially take the step to combine the data, models, compute, distribution and talent.“

The deal follows X’s financial recovery, aided by Musk’s political ties to US President Donald Trump and a rebound in advertising after a slump.

X CEO Linda Yaccarino endorsed the initiative, although the impact on X’s staff and leadership remains unclear. The acquisition aligns with a broader AI boom, though it raises concerns about an unregulated AI race amid global competition. ”The future could not be brighter,” she said.