Elon Musk says that his AI venture xAI has acquired his social media platform X, formerly known as Twitter. In an X post Friday, Musk said the all-stock transaction values xAI at $80bn (£61.8bn) and X at "$33billion ($45B less $12B debt)" Musk added. Musk paid $44bn for Twitter in 2022. "xAI and X's futures are intertwined," Musk wrote on X Friday. "Today, we officially take the step to combine the data, models, compute, distribution and talent." The move may be aimed at protecting investors, who helped him buy X, from losing money. Both X and xAI are privately held and share some major investors. They also share significant resources. "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," Musk wrote. XAI has used data from social media posts on X to train its models, and its chatbot Grok is a prominent feature on the platform. "The move appears sensible, considering the current trend of increased investments in AI, data centres, and computing," said analyst Paolo Pescatore, founder of PP Foresight. Mr Musk has been locked in a legal battle with OpenAI, the company he founded in 2015 with CEO Sam Altman. Last year, Mr Musk sued OpenAI and Mr. Altman for straying from the company's original mission and pushing to transition the startup to a for-profit model. On Friday, the Wall Street Journalreportedthat OpenAI was finalizing a $40bn funding round with the Japanese conglomerate SoftBank. The outlet also reported the funds are contingent on the company completing its restructuring to a for-profit entity. OpenAI did not respond to a BBC inquiry about the arrangement. Critics say Mr Musk is suing the ChatGPT makers because he wanted to control it. Earlier this year, a consortium led by Mr Musk made an unsolicited $97.4bn takeover bid for OpenAI, which Mr Altman rejected, saying the company is not for sale. The business manoeuvring is happening as Mr Musk has taken more of an interest in politics, now serving as President Donald Trump's right-hand. He has spearheaded the administration's push to slash federal spending and is spending the weekend in Wisconsin where he has contributed millions to a state Supreme Court race. Wisconsin's attorney general asked a court Friday toblock Mr Musk from distributing $1m checksto voters there ahead of the election.
Musk's xAI buys his social media platform X
TruthLens AI Suggested Headline:
"Elon Musk's xAI Acquires Social Media Platform X in $80 Billion Deal"
Bbc News
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TruthLens AI Summary
Elon Musk has announced that his artificial intelligence company, xAI, has acquired his social media platform, X, which was previously known as Twitter. This acquisition, valued at $80 billion, includes an all-stock transaction that places X's worth at approximately $33 billion, factoring in $12 billion of debt incurred during Musk's $44 billion purchase of Twitter in 2022. In a post on X, Musk emphasized the intertwined futures of xAI and X, stating that the merger would enable the integration of data, computational resources, and talent. This strategic move is likely intended to safeguard investors who financed Musk's acquisition of X, ensuring they do not face financial losses from their investments. Both companies are privately held and share a significant pool of investors and resources, which could enhance their collaborative capabilities moving forward.
Analysts have noted that this acquisition comes at a time when investments in artificial intelligence and related technologies are on the rise. Paolo Pescatore, an industry analyst, remarked that the merger aligns with current trends in the technology sector, particularly regarding AI and data management. xAI has already leveraged data from social media interactions on X to enhance its AI models, including its chatbot Grok, which is a notable feature on the platform. In the backdrop of this acquisition, Musk is also involved in legal disputes with OpenAI, the AI company he co-founded, over its shift to a for-profit model. Musk's recent political engagements, including significant financial contributions to political campaigns in Wisconsin, further illustrate his expanding influence beyond the tech realm. These developments highlight Musk's multifaceted approach to business and politics as he navigates complex legal and financial landscapes in the AI industry.
TruthLens AI Analysis
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