Elon Musk announced that his AI startup, xAI, had acquired his social media platform, X, in an all-stock transaction valued at $33 billion. This move combines the data, models, compute, distribution, and talent of both companies. X recently raised $1 billion, but Musk took it private in 2022 at nearly the same valuation. Musk launched xAI in 2023 and introduced Grok, an AI-powered chatbot integrated into X. Grok is marketed as a truth-seeking AI, although it has been known to disagree with Musk on certain issues. The merger aims to enhance user experiences and accelerate human progress by leveraging xAI’s advanced AI capabilities with X’s massive reach.
Investors such as Blackrock, Fidelity, Morgan Stanley, Sequoia Capital, Nvidia, and AMD have shown interest in xAI, with a recent funding round valuing the company at $45 billion. Reports suggest that xAI is considering another funding round that could value the company at $75 billion.
Overall, the merger between xAI and X signifies a significant development in the AI and social media industries. Musk’s vision for the combined company is to deliver smarter and more meaningful experiences to billions of users while remaining committed to seeking truth and advancing knowledge. As the story continues to evolve, updates will be provided by Jason Abbruzzese and Steve Kopack of NBC News.
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