Tesla and SpaceX CEO Elon Musk said the deal will unlock huge potential by combining xAI's cutting-edge capabilities and expertise in artificial intelligence with X's vast reach.
According to him, the combined value of xAI is $80 billion and X is $33 billion, which is $45 billion less than its $12 billion debt.
Elon Musk, the richest person in the world, acquired X, formerly known as Twitter, for $44 billion in 2022 to eliminate censorship on the platform, while claiming that it was not being used effectively enough.
“The combined company will provide billions of people with more intelligent and meaningful experiences while staying true to our core mission of seeking truth and advancing knowledge,” Musk wrote.
xAI’s flagship product is Grok, an AI-powered chatbot that’s already integrated into X for premium subscribers. It’s set to compete with other chatbots like ChatGPT, created by OpenAI. xAI also competes with Google’s Gemini and Anthropic’s Claude.
Musk co-founded OpenAI in 2015 with Sam Altman, Ilya Sutzkever, Greg Brockman, and others, but separated from the company in early 2018, failing to secure control of the company as its majority shareholder and CEO.
Source: Reuters
