In all-stock deal, Musk sells X to his own xAI for USD 33 bn
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Washington: Elon Musk has sold social networking platform X to his own xAI artificial intelligence startup in an all-stock transaction worth USD 33 billion, the billionaire said on Friday. Both companies are privately held, thus they are not obligated to reveal their financial information to the public.
Musk said in a post on X that the move will “unlock immense potential by blending xAI's advanced AI capability and expertise with X's massive reach.” He said the deal values xAI at USD 80 billion and X at USD 33 billion. Musk, who serves as CEO of Tesla and SpaceX as well as an advisor to President Donald Trump, bought the site then called Twitter for $44 billion in 2022, gutted its staff and changed its policies on hate speech, misinformation and user verification and renamed it X.
He launched xAI a year later.
“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,” Musk wrote on X.
“The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.”
With inputs from IANS