AI company xAI, led by Elon Musk, has completed an all-stock acquisition of X (formerly Twitter), which has an estimated market value of $33 billion. According to Musk, the merger will enable the integration of cutting-edge AI technology from xAI with X’s extensive user base to unlock new possibilities.
Elon Musk Sold X To His xAI Startup
When Elon Musk acquired Twitter for $44 billion in 2022, he initiated the development of AI-driven solutions for the social media platform. User interactions on X now heavily depend on the development of xAI’s technology, given its massive 600 million subscriber base. Musk emphasized that merging operational data with analytical models and professional expertise will create a system that reflects the real world and sets a new standard for human achievement.
The acquisition values xAI at $80 billion, while X’s valuation includes its $12 billion in debt. The acquisition provides xAI with access to X’s vast distribution capabilities and extensive user data, enabling enhanced AI development.
Grok 3 And ChatGPT Are Major AI Players
Musk’s AI venture has attracted media attention through its chatbot Grok 3, which became publicly available in February. According to industry analysts, this system possesses ten times the processing power of its previous versions. Musk aims for Grok 3 to challenge OpenAI’s ChatGPT and other competitors in the AI space.
The escalating competition between Sam Altman and Elon Musk as rival CEOs has intensified their ongoing feud. The two transitioned from partners to rivals after Elon Musk left OpenAI in 2018. The rapid advancements of ChatGPT have led to heightened competition among all major AI players.
X’s Advertising And Political Influence
X’s advertising platform has come under direct scrutiny by analysts. Market experts predict increased advertising spending on X as various businesses seek to align with Musk, who is a financial supporter of Donald Trump. Some experts suggest that investing in X’s development presents companies with opportunities to mitigate potential legal and financial risks.
This takeover by Musk is reshaping the modern tech landscape, merging artificial intelligence with social media as he pursues his vision of an AI-driven future.
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