Elon Musk Sells X To His AI Startup xAI For $33 Bn In All-Stock Deal

Elon Musk has sold X, the social media platform, to his own AI company, xAI in an all-stock deal worth $33 billion, he announced on Friday. 

Since both companies are privately owned, they don't have to share financial details with the public.

X and xAI already share resources like engineers. xAI's chatbot, Grok, is trained on data from X users and is available on the platform. Last month, X’s bankers told investors that some of its revenue came from xAI.

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Musk said the deal will combine xAI’s AI expertise with X’s large user base, unlocking new potential. He valued xAI at $80 billion and X at $33 billion. Musk, who also leads Tesla and SpaceX, bought Twitter for $44 billion in 2022, rebranded it as X, reduced its workforce and changed policies on hate speech, misinformation and user verification.

"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, " he added.

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