Elon Musk’s AI Company xAI Buys Elon Musk’s Social Media Platform X

Title: Elon Musk’s AI Company xAI Buys Elon Musk’s Social Media Platform X

On Friday, Elon Musk made a significant announcement regarding his ventures in the technology realm: his artificial intelligence company, xAI, is acquiring his social media platform, X, which was formerly known as Twitter. The deal, which is structured as an all-stock transaction, values xAI at a staggering $80 billion and X at $33 billion, as reported by CNBC.

In a tweet that accompanied the announcement, Musk emphasized the transformative nature of this acquisition. He 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).” This strategic move underscores Musk’s ongoing commitment to intertwining AI with social media, aiming to create a dynamically integrated platform capable of harnessing vast amounts of data and advanced models.

Musk’s purchase of Twitter in October 2022 for approximately $44 billion marked the beginning of his efforts to reshape the platform. Shortly after this acquisition, he founded xAI in March 2023, with the mission of developing advanced AI technologies. In announcing this new phase for X, Musk referred to it as the “real-time source of ground truth” for a global community of 600 million active users.

However, Musk’s tenure at the helm of the platform has been controversial. Critics argue that his changes have resulted in a toxic environment, with far-right extremists finding a newfound voice on X. Notable figures like Nick Fuentes and Alex Jones, who had previously faced bans, have been welcomed back into the fold, raising concerns about the implications for discourse on the platform. Musk, who had once vowed not to reinstate Jones, seems to have shifted his stance, suggesting a business strategy aimed at maximizing engagement, regardless of the content’s nature.

As xAI and X merge, Musk believes they can leverage their respective strengths. He stated, “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.”

Despite these grand ambitions, critics have pointed out a disconnect between Musk’s declared commitment to “truth” and his public statements, particularly regarding financial matters and the regulation of his platforms. Just a day prior to the acquisition announcement, he made claims regarding increases in Social Security benefits—a matter well beyond his purview, provoking skepticism about his credibility.

In his communication about the acquisition, Musk asserted that the unified entity would endeavor to deliver "smarter, more meaningful experiences to billions of people," while staying true to its core mission of truth and knowledge advancement. His declaration that this acquisition represents "just the beginning" speaks to his long-term vision, yet he continues to face scrutiny over how these ideals will manifest amidst the current chaos surrounding X.

In closing his announcement, Musk expressed his gratitude to the teams at both xAI and X, highlighting their “hardcore dedication.” Whether this acquisition leads to a successful integration of AI with social media or exacerbates existing challenges in communication and truth remains to be seen, but it certainly marks a new chapter in Musk’s multifaceted business endeavors.

For more details, you can refer to the original report by CNBC.