The startup AI company from Elon Musk, xAI, recently completed the acquisition of X, which he also owns. xAI bought out the entirety of the company as it purchased major stocks of the social media platform.
Previously, xAI and X were two separate entities that only had the same ownership but still focused on two different businesses altogether.
Elon Musk's xAI Recently Purchased X Through Stocks
In a new post shared by Musk, he revealed that xAI has recently completed the acquisition of X, the social media platform that was once known as Twitter. It was revealed by the billionaire that this acquisition focuses solely on an "all-stock transaction," but it was not revealed how much xAI bought X for or how large is its ownership stake.
Moreover, Musk claimed that the combination of both companies "values xAI at $80 billion and X at $33 billion ($45B less $12B debt)."
According to the multi-tech executive, the goal of this acquisition is to build a platform that would "not only reflect the world" but also help accelerate its human progress, which combines the artificial intelligence tech from xAI and human input via X.
This acquisition led to many questioning what is different from its previous setup apart from their new status on paper. Some people online have gone to question who really owns xAI.
The 'Intertwined' Future: xAI to Power X's Experiences
Furthermore, Musk claimed that X and xAI's futures are "intertwined," and this acquisition officially marks the company's first steps towards combining the "data, models, compute, distribution, and talents" that are present in both companies.
The combination of X and xAI will bring a different experience for users in the future, with the social media platform helping deliver the developments over at Musk's AI company. However, no specifics have been provided yet.
Elon Musk's Massive Focus on AI For X
Less than two years ago, Musk started another company that focused on developing generative AI and machine learning technology to compete with other similar companies. xAI was given a massive opportunity to train its models using a vast collection of data from the billionaire's other companies like Tesla, Neuralink, and more.
The company started out with its delivery of Grok, the chatbot integrated into X, which was touted to be the all-knowing and "sassy" technology that features a vast understanding of the universe. Grok was initially released on the X Premium+ tier, and then later made available to its base subscription plan, Premium. Most recently, its Grok-2 model was made available to access for free.
Since then, Musk has made it a top focus to develop artificial intelligence for his platform via xAI, and the goal is to rival the likes of Google, Microsoft, and OpenAI.
