Elon Musk's xAI has completed an acquisition of his social media platform X, valued at $45 billion. This all-stock deal, which includes $12 billion in debt, means X's equity value stands at $33 billion. Musk aims to integrate the AI capabilities of xAI with the extensive reach of X, stating this will unlock significant potential. X and xAI have previously collaborated on the Grok AI chatbot, enhancing their synergy, while Musk's other investments in xAI include participation from major firms like Fidelity and Sequoia Capital. Post-acquisition, xAI's value is estimated at $80 billion, suggesting market confidence in this merger.
"This combination will unlock immense potential by blending xAI's advanced AI capability and expertise with X's massive reach," Musk stated.
"The merger will 'combine the data, models, compute, distribution and talent' of the two companies," according to Musk's announcement.
"Musk claims xAI's post-acquisition value is $80 billion, which aligns with a projected $75 billion valuation discussed last month," according to Bloomberg.
"Some investors have already invested in xAI, including Fidelity Management & Research, Andreessen Horowitz, Sequoia Capital, and Kingdom Holding Company."
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