Musk stated that this was a stock-based transaction, resulting in xAI being valued at $80 billion and X at $33 billion. X’s previous valuation was $45 billion, but after deducting $12 billion in debt, its value decreased. Musk noted that xAI and X are now inseparably linked, and this acquisition integrates data, AI models, computing power, user base, and talented professionals.
xAI’s main product, the Grok AI chatbot, was already being used on the X platform. This acquisition will further strengthen xAI’s position in the artificial intelligence sector.
Musk also leads companies such as Tesla, SpaceX, and Neuralink. After founding xAI in 2023, he recruited renowned experts from Google DeepMind, Microsoft, and OpenAI.
His main competitors are OpenAI, Google DeepMind, and Anthropic. In February, xAI introduced Grok 3, an advanced AI model that demonstrated high performance in mathematics, science, and programming.
Musk is also opposing OpenAI’s transition to a for-profit model and has filed a lawsuit to prevent it. In February, he attempted to acquire OpenAI with a $97 billion offer, but this proposal was rejected.
Musk’s advantage with xAI lies in its access to X’s vast database of user-generated content. For AI development, a large volume of data is crucial, and X serves as a key resource that benefits Musk.
With this move, Musk has demonstrated that X is now an integral part of his artificial intelligence strategy. X is no longer just a social media platform but a crucial element in Musk’s broader AI ambitions.
