Musk announced the acquisition of X by xAI for $113 billion dollars

The South African Elon Musk announced via his X account that xAI has officially acquired the X platformin an all-stock transaction with a total combined valuation of $113 billion. Musk, who owns both X and xAI, explained that the deal values xAI at $80 billion and X at $33 billion, subtracting $12 billion in debt. Likewise, the South African tycoon and also owner of the Tesla company detailed that the acquisition represents a sophisticated strategic move to merge one of the world's most defining social networks with advanced artificial intelligence.

"X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth. xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress," Musk wrote on his X account.

Tipping point

Elsewhere in his tweet, the South African tycoon took advantage of the announcement to thank the commitment shown by the teams of both companies, assuring that achieving this merger was not an easy road and that such a step is the beginning of a path that he hopes will be successful. The merger promises to mark a turning point in the sector by repowering X with greater artificial intelligence capabilities artificial intelligence, in a context in which, although this technology is covering more and more spaces, it has not yet finished consolidating itself in some of the most important social networking platforms.

Founded in 2023, xAI has quickly become one of the leading artificial intelligence labs, standing out mainly for its ability to build models and data centers at high speed. For its part, X has experienced turbulent periods in recent years, even before the South African tycoon decided to buy it, an action that generated numerous criticisms from the U.S. left.