$33 billion in an all-stock deal
In a bold move that merges the power of artificial intelligence with social media, Elon Musk’s xAI has officially acquired X (formerly known as Twitter) for $33 billion in an all-stock deal. The deal, which also includes $12 billion in debt, values the combined companies at a staggering $45 billion. This acquisition is more than just a business transaction—it marks a turning point for both companies, with Musk aligning xAI’s AI expertise with X’s global reach.
Elon Musk expressed his excitement over the merger, stating, “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. 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. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”
The acquisition will enable Musk to harness the full potential of xAI’s technology, providing Grok (xAI’s AI model) with valuable data from X’s platform to further train and refine its algorithms. This integration promises to deliver enhanced, smarter user experiences on X while also improving Grok’s capabilities. Additionally, Twitter’s investors stand to gain $1 billion on paper from the deal, indicating that the merger has been beneficial for all involved.
The key takeaway from this deal? When companies with complementary assets align, they create more opportunities for growth. Musk’s ability to merge xAI with X showcases the power of combining expertise and reach, potentially saving both companies from the challenges they faced. This strategic move proves that, in business, the right partnerships can work wonders, even for sinking ships.