Musk Sells X to xAI: Elon Musk announced on Friday that his artificial intelligence company xAI has acquired social media platform X. This acquisition has been done as an all-stock transaction. This deal has been done for $ 33 billion. Which also includes a debt of $ 12 billion. Due to this the overall valuation of X becomes $ 45 billion. Let us tell you, Musk’s AI company is currently the center of discussion around the world. In such a situation, after this acquisition, it will have a huge amount of data. Which will reach in real time.
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Musk Sells X to xAI: What did Elon Musk say about this Deal?
Elon Musk wrote on the social media platform X, “xAI has acquired X. Since its establishment two years ago, xAI has been working rapidly. Currently, it has created a leading AI lab. At the same time, X has more than 600 million active users.
In the last two years, it has been ranked among the best companies in the world.” He said that together, both companies will be able to provide smarter and more meaningful experiences to billions of people. Through this step, we will not only be able to show what is happening in the world but will also be able to increase human progress.
Musk writes, “xAI and the future of X are intertwined. Today we are officially combining data, modules, compute, distribution, and talent.” The acquisition comes at a time when AI competition is heating up.
About the Musk Sells X to xAI Deal
Background: Elon Musk bought X (formerly known as Twitter) in October 2022 for $44 billion. This amount is equivalent to ₹3.76 lakh crore in today’s terms. xAI was launched by Musk in 2023, with the goal of increasing our understanding of the universe through AI. The company has developed advanced AI models such as Grok.
Musk Sells X to xAI Deal Structure.
- This is an “all-stock” deal, i.e. xAI has used its shares to buy X and not paid cash. This will result in X’s investors getting shares in xAI.
- X is valued at $33 billion, based on its $45 billion net worth minus its $12 billion in debt. xAI is valued at $80 billion.
- 33 billion dollars, i.e., 2.82 lakh crore rupees. 45 billion dollars, i.e., 3.85 lakh crore rupees. 12 billion dollars, i.e., 1.03 lakh crore rupees.
Purpose
- Musk has done this to combine xAI’s advanced AI technology with X’s large user base (over 600 million active users).
- Using X’s data, xAI will be able to train its AI models (such as the Grok chatbot) more easily. X’s users can get a better, AI-powered experience.
- Musk claims the combination will “accelerate human progress” and strengthen his core mission to “pursue truth and advance knowledge.”
Both Companies had Raised Funds
Recently, both companies had raised funds. Last year, X raised a billion-dollar fund at a valuation of 44 billion dollars. Whereas, xAI had raised funds from BlackRock, Fidelity, Morgan Stanley, Sequoia Capital, Nvidia and AMD at a valuation of 45 billion dollars. According to the report, xAI may soon start its next funding round at a valuation of $75 billion.
Impact:
- For Musk: The deal will connect Musk’s business empire, increasing collaboration between his companies.
- For the people: Musk claims this will give billions of people smarter and more meaningful experiences.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗