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Elon Musk has sold his social networking platform X to his artificial intelligence business xAI in a $33 billion all-stock transaction, stepping up his efforts to incorporate generative AI into one of the world’s most prominent technology platforms.
The transaction, announced on Friday, unites two of Musk’s most prominent businesses under a single AI-driven vision, raising fresh concerns about how X can grow from here.
What is the objective of the X and xAI merger?
The backstory:
In an X article, Musk said that the deal would “unlock immense potential” by merging xAI’s sophisticated artificial intelligence skills with X’s large user base and distribution network. He envisioned a future in which data, models, computational power, and product creation are shared across both platforms.
Musk founded xAI in 2023, a year after buying Twitter for $44 billion and rebranding it X. The main product of xAI is Grok, an AI chatbot that is already incorporated into X for paying users. The corporation also utilized data from X postings to build its language algorithms.
Musk valued xAI at $80 billion and X at $33 billion during the purchase. Both are privately owned and do not have to make financial reports public.
What impact will Musk’s xAI acquisition have on his tech empire?
Musk’s new xAI-X combo aims to provide “smarter, more meaningful experiences to billions of people,” while also pursuing a common objective of “seek truth and advance knowledge.” X users may be acquainted with Grok, xAI’s chatbot, which is accessible to premium members and integrated into the platform’s everyday user experience.
As part of Musk’s larger digital empire, which includes Tesla and SpaceX, the transaction represents a further drive to integrate AI with consumer-facing platforms, using real-world data to fuel machine learning capabilities.
What future changes could X users expect?
What we don’t know: It’s unclear if X users may anticipate quick improvements. xAI was already utilizing X data to train its algorithms, and its chatbot was included into the platform. The agreement may indicate further product convergence, but Musk has not disclosed any particular changes to user rules or platform features.
There is also no indication of how the sale would influence moderation standards, content governance, or regulatory monitoring — all of which have received attention since Musk took control Twitter in 2022.
