Elon Musk’s artificial intelligence company xAI has bought social network X (formerly Twitter), also owned by Musk, in a $33 billion stock swap deal. About this informs Associated Press.
Because both companies are privately held, they are not required to make their financial statements public. In a message on the X platform, Musk said that such a merger will help “unleash enormous potential by combining xAI’s cutting-edge developments in artificial intelligence with X’s massive audience.” The deal values xAI at $80 billion and X at $33 billion, he said.
“The future of xAI and X is interconnected. We bring together data, models, computing resources, distribution channels and talent,” Musk explained.
It’s not yet clear whether the deal will lead to changes for users of the X platform. Currently, xAI already uses content from X to train its models, and paid subscribers to the social network have access to Grok, an AI-powered chatbot.
It will be recalled that Elon Musk purchased Twitter at the end of October 2022, after which he announced the excessive costs of the company and began to reduce the staff. Already on November 4, it became known that the number of employees was reduced to 7,500. Entire teams were fired.
Subsequently, Musk introduced new rules for the functioning of the platform, as well as restored some of the previously blocked accounts. On July 23, he announced a change in the brand and logo of the social network — it is now called X.
