Elon Musk recently announced that he has sold his social media company, X, to his artificial intelligence start-up, xAI, in an all-stock deal. The arrangement valued xAI at $80 billion and X at $33 billion. This move showcases his unique financial maneuvers within his business empire. The combined company will focus on delivering smarter and more meaningful experiences to billions of people while staying true to the core mission of seeking truth and advancing knowledge.
X and xAI have already been sharing significant resources such as engineers, and xAI’s chatbot called Grok is trained on data posted by X users. The deal highlights how Musk can strategically play with different parts of his business empire, similar to previous maneuvers he made with his other companies like Tesla and SolarCity. Most of Musk’s companies are privately held, making their financial information more opaque than publicly traded companies like Tesla.
While X has been facing financial challenges since Musk purchased the company in 2022, xAI has been rapidly growing. The A.I. start-up raised $6 billion from investors in December and has been expanding its operations, including building the world’s largest supercomputer. The deal between X and xAI is seen as beneficial for investors in both companies as it streamlines the financial relationship between the two entities. The move is expected to bring positive changes and fresh opportunities for both X and xAI.
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