Musk Merges X and xAI into an $80 Billion Tech Giant
Elon Musk has made a strategic move by selling the social network X to his AI startup xAI for $33 billion through a stock exchange. This historic merger creates an $80 billion tech giant, combining the power of the largest communication platform with cutting-edge artificial intelligence developments.
Massive Merger Changes the Technology Landscape
According to CNN’s report, the deal to transfer social network X under xAI’s control was executed through a stock exchange valued at $33 billion. The total valuation of X stands at $45 billion, including $12 billion in debt, which is notably lower than the $44 billion Musk paid for Twitter in 2022.
The merged entity, valued at $80 billion, creates a powerful player in the technology market, combining a massive social platform with cutting-edge developments in artificial intelligence. X, which currently has over 600 million active users, is being integrated with the Grok AI system, which is already among the world’s top three AI systems.
A significant boost came from December’s $6 billion investment from leading financial institutions, including BlackRock and Morgan Stanley. These funds will enable the expansion of the Colossus supercomputer’s computing power from the current 100,000 to 200,000 Nvidia Hopper GPUs.
The strategic significance of the merger lies in expanding Grok AI’s capabilities. While the system previously had access only to public X posts, following the companies’ merger, a substantial expansion of the AI training database is expected, including the possibility of using platform users’ personal data to improve artificial intelligence algorithms.
The merger of X and xAI under Elon Musk’s leadership creates a powerful player in the technology market that combines social communications with cutting-edge developments in artificial intelligence. This union opens new opportunities for AI technology development and could significantly impact the future of digital interaction.
