Elon Musk has merged his AI venture xAI with the social media platform X, which he bought as Twitter for $44 billion in 2022. In a post on X, the Tesla billionaire said the future of the two companies was “intertwined” as he revealed xAI had acquired X for $33 billion – more than $10 […]
Elon Musk has merged his AI venture xAI with the social media platform X, which he bought as Twitter for $44 billion in 2022.
In a post on X, the Tesla billionaire said the future of the two companies was “intertwined” as he revealed xAI had acquired X for $33 billion – more than $10 billion less than he originally paid for the platform.
The all-stock transaction values xAI at $80 billion. Musk said: “Today, we officially take the step to combine the data, models, compute, distribution and talent.”
Both firms are privately held, but they also share some major investors, and Musk has already shared resources, including using data from X to help train xAI’s models.
Grok – which is xAI’s chatbot – is a key feature of X’s premium offering and features prominently on the platform.
“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.
Musk his faced a tumultuous journey since he bought X. The announcement came just days after a US judge rejected the billionaire’s efforts to throw out a lawsuit claiming he defrauded former Twitter shareholders by waiting too long to disclose his initial investment in the social media company.
Manhattan-based US District Judge Andrew Carter rejected Musk’s bid to dismiss the suit, saying the claimants had adequately pleaded that the X boss had intended to commit fraud.
Evidence includes claims he submitted an improper regulatory filing, posted misleading tweets about Twitter’s future, and enacted a strategy to quietly build up his stake in the platform before finally bidding to buy it.
Plaintiffs led by the Oklahoma Firefighters Pension and Retirement System said Musk ignored an SEC deadline of March 24, 2022 to reveal he had bought 5% of Twitter shares, and waited 11 more days before revealing his 9.2% stake in an SEC filing.
Carter did not rule on the merits of the case and the judge also dismissed some other claims within the class action suit.
The billionaire, who is an adviser to President Donald Trump, is also facing action from the US Securities and Exchange Commission over the acquisition.
