Elon Musk Transfers Ownership of X to xAI in $45 Billion Stock Deal
Tech billionaire consolidates interests in artificial intelligence and social media through significant restructuring.
Elon Musk has restructured his business holdings by transferring ownership of the social media platform X, previously known as Twitter, to his artificial intelligence startup, xAI, in a stock transaction valued at $45 billion, which includes liabilities.
This move marks a significant shift nearly three years after Musk's acquisition of Twitter for $44 billion, a transaction that was completed in October 2022. Following the acquisition, Musk rebranded the platform to X in an effort to reflect his vision of an integrated digital services platform.
The transaction was publicly announced by Musk via a post on X, in which he outlined the operational synergies expected from the integration of xAI with X. Musk emphasized that the future of both entities is interconnected, stating, "The future of xAI and X is closely intertwined.
Today we officially take the step to combine data, models, computations, distribution, and talent."
Post-merger, the combined valuation of the entities is estimated to be around $80 billion.
xAI was established in 2023 and has seen substantial financial backing, securing $6 billion in funding during this period.
The influx of capital has contributed to xAI's rapid growth, with insiders estimating its worth at approximately $40 billion.
In the broader context of the artificial intelligence industry, Musk previously made an unsuccessful attempt to acquire OpenAI, the organization behind ChatGPT, with a bid of $97.4 billion that involved a consortium of investors.
OpenAI declined the offer, indicating the company was not for sale at that time.
The competitive landscape of AI continues to evolve, prompting xAI to enhance its data center capabilities to support the training of more advanced AI models, thereby bolstering its position in the market.
This move marks a significant shift nearly three years after Musk's acquisition of Twitter for $44 billion, a transaction that was completed in October 2022. Following the acquisition, Musk rebranded the platform to X in an effort to reflect his vision of an integrated digital services platform.
The transaction was publicly announced by Musk via a post on X, in which he outlined the operational synergies expected from the integration of xAI with X. Musk emphasized that the future of both entities is interconnected, stating, "The future of xAI and X is closely intertwined.
Today we officially take the step to combine data, models, computations, distribution, and talent."
Post-merger, the combined valuation of the entities is estimated to be around $80 billion.
xAI was established in 2023 and has seen substantial financial backing, securing $6 billion in funding during this period.
The influx of capital has contributed to xAI's rapid growth, with insiders estimating its worth at approximately $40 billion.
In the broader context of the artificial intelligence industry, Musk previously made an unsuccessful attempt to acquire OpenAI, the organization behind ChatGPT, with a bid of $97.4 billion that involved a consortium of investors.
OpenAI declined the offer, indicating the company was not for sale at that time.
The competitive landscape of AI continues to evolve, prompting xAI to enhance its data center capabilities to support the training of more advanced AI models, thereby bolstering its position in the market.
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