Elon Musk Sells Social Media Platform X for $33bn, Unveils Future Plans
- Elon Musk has announced the transfer of social media platform X to his Artificial Intelligence startup, xAI
- The all-stock deal between the two companies is valued at $33 billion has driven the valuation of xAI to $80 billion
- The merger aims to integrate xAI’s AI capabilities with X’s massive user base to create an advanced AI
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends. (edited)
Elon Musk has decided to merge his artificial intelligence startup, xAI, with his social media platform, X, in an all-stock transaction valued at $33 billion.
This deal has now elevated xAI's valuation to $80 billion.
Source: Getty Images
Elon Musk prepares for the future with xAI
In a statement shared on X, Musk, who controls both privately held companies, said the merger would integrate xAI’s advanced AI capabilities with X’s vast user base and distribution network, unlocking new opportunities for AI-driven innovation.
Musk wrote:
"Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale.
"X is the digital town square where more than 600 million active users go to find real-time sources of ground truth."
"The merger brings together xAI’s expertise in artificial intelligence with X’s global reach, aiming to create a platform that delivers "smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge."
Elon Musk further stated that the integration of xAI and X is set to reshape AI technologies and social media.
He promised to deliver enhanced, meaningful experiences to billions worldwide while propelling human progress forward.
Source: Getty Images
The billionaire added:
"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 merged company aims to create smarter, more impactful experiences for billions of people while remaining committed to its core mission of seeking truth and advancing knowledge.
"This integration will enable the development of a platform that not only mirrors the world but also drives human progress forward."
The entrepreneur expressed gratitude to employees at both companies for their dedication, emphasizing that this was only the beginning of their combined efforts, BBC reports.
His words:
"I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning. Thank you for your continued partnership and support."
Elon Musk's Starlink's ranking among internet service providers
Legit.ng previously reported that Elon Musk-owned satellite internet service provider, Starlink, has become the second-largest internet service provider (ISP) in Nigeria, displacing FiberOne Broadband in the last quarter of last year.
This is according to new data from the Nigerian Communications Commission (NCC).
Despite its expensive pricing, Starlink’s user base has more than doubled in 2024, rising from 23,897 subscribers in 2023 to 65,564 at the end of last year.
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Source: Legit.ng
