Who owns xAI? All about the Elon Musk's new company that has bought X

Elon Musk founded xAI in 2023, and he is the primary owner and driving force behind the company. xAI is a private company focused on building AI. Musk on March 28 revealed that he had sold his social media platform X to xAI in an all-stock transaction for $45 billion, including debt. According to Musk, together the combined value of the companies is $80 billion.

In a tweet, Musk mentioned:

"XAI and X's futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. 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."

Musk had acquired Twitter on October 22 and renamed it as X.

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What is xAI?

Elon Musk, founded xAI, an American artificial intelligence company in 2023. Headquartered in San Francisco, California, the company operates as a public-benefit corporation and aims to develop advanced AI models to compete with industry giants like OpenAI, Google, and Microsoft. The company recently raised $10 billion in a funding round which led to the company's value at $75 billion.

As per the company's website:

"Our approach to rapid development and iteration allows us to innovate at breakneck speeds. We're not interested in speed for speed's sake - we're here to solve real problems. We build AI specifically to advance human comprehension and capabilities."

The team at the AI company is made up of experts who have previously worked on projects like GPT, and Google DeepMind. X's AI chatbot, Grok, was introduced by the same company to provide real-time responses on the social media platform.

As per reports, the new company has used data from social media posts on X to train its models. Analyst Paolo Pescatore, founder of PP Foresight while speaking to BBC, commented on the merger saying:

"The move appears sensible, considering the current trend of increasing investments in AI, data centres, and computing."

Musk shares ownership of X with a group of other investors who originally helped him buy the social network in 2022. However, as per reports, Musk did not seek the opinion and advice of these investors before selling the company.

Musk's move sounds promising in a generation moving towards AI and the billionaire has also noted that he wants to turn X into an "everything app" with a payments system.

Neither Musk nor his spokesperson elaborated on the details of the merger.