Elon Musk Merges xAI With X in $113 Billion Deal

Elon Musk has merged his artificial intelligence company, xAI, with X (formerly Twitter).

The all-stock transaction values the combined entity at $113 billion, with xAI valued at $80 billion and X at $33 billion.

Key Points

• xAI’s chatbot Grok will leverage X’s extensive user-generated data for real-time AI model training.
•  Executives anticipate easier capital-raising opportunities under the combined xAI Holdings Corp.
• All X and xAI shares will convert to shares in the newly formed xAI Holdings Corp, registered in Nevada.
• X and xAI share major investors, including Sequoia Capital, Vy Capital, and Valor Equity Partners. X previously held a 10% stake in xAI.
• The merger positions xAI Holdings as a major player in AI development, competing with OpenAI and Google.
• This strategic move reflects Musk’s ambition to accelerate AI advancements by leveraging X’s data and distribution capabilities.

Background

Elon Musk has merged his artificial intelligence startup xAI with X, the social media platform he acquired in 2022.

Musk has a history of merging companies. In 2016, he used Tesla stock to acquire SolarCity, a solar energy firm. His other ventures include SpaceX, Neuralink, and Boring Co.

The move reflects Musk’s strategy of consolidating his ventures to enhance AI capabilities using X’s vast data resources.

News Gist

Elon Musk has merged his AI startup xAI with X in an all-stock deal, valuing the combined entity at $113 billion.

The merger will enhance xAI’s AI capabilities using X’s data, positioning xAI Holdings Corp as a key competitor to OpenAI and Google.