lon Musk’s xAI company has recently purchased the social media platform X, formerly known as Twitter. This deal managed to raise the value of the social
media platform to $33 billion, a sum that can now be shared with the platform’s co-investors.
This interesting deal was announced by Elon Musk directly in a post on his X account on Friday.
“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).”, Elon Musk stated in this X post.
In his post, Elon Musk explained that these two companies have a powerful future together because when associated, they are able to create and develop impressive artificial intelligence technologies.
"xAI and X's futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution, and talent.", he also stated.
It should be mentioned that this recent deal allowed the formerly Twitter social media platform to be placed directly under Musk’s authority. The artificial intelligence startup was founded two years ago, in 2023, by Elon Musk in order to be a direct rival to OpenAI. It’s true that all various xAI features have been integrated into the X social media, but this arrangement represents a powerful duo for Elon Musk.
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According to different publications and sources familiar with this matter, shares on both xAI and X social media platforms will soon be traded for others' shares of xAI Holdings Corp, a newly formed holding company.
Elon Musk is also the leader of other companies such as Neuralink, SpaceX, and Tesla, and the valuation for X after this Friday's deal reached $33 billion. It seems that this valuation is significantly lower due to the fact that the company has $12 in debt. In 2022, Elon Musk initially purchased the Twitter social media platform for $44 billion, when it made it private.
Now, the raised valuation is mostly due to the fact that Elon Musk is the special adviser leading DOGE, and the X platform has become a more influential social media platform with millions of daily active users.
It remains to be seen when these two associated companies will create something new and impressive for the industry. Stay tuned for more updates!
