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Elon Musk has sold his platform, X, to his own artificial intelligence company xAI, in an all-stock deal.
The transaction was executed this Friday, and according to Baller Alert, it saw xAI's value clock in at $80 billion. As for X, it was valued at $33 billion, a far cry from the $44 billion Musk shelled out when he purchased the platform, then known as Twitter, back in 2022. As per the outlet, the $33 billion price tag includes the platform's debt of $12 billion.
The billionaire mogul took to X to reveal the news in a lengthy statement, which reads, in part, as follows:
"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 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."
Everything we know about Elon Musk's $80 billion-worth company:
The statement further read:
"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."
He then appreciated the "hardcore dedication of everyone at xAI and X that has brought us to this point," noting that this is "just the beginning." As reported by CNN, Musk claims that the valuation of the newly-amalgamated company is now $80 billion.
In 2022, Musk purchased Twitter, he quickly enacted drastic changes. He fired nearly all of its staff, changed its name to X, and revised its pre-existing policies related to hate speech, misinformation, and user verification.
As for xAI, it is a public-benefit corporation that deals with artificial intelligence founded by Musk back in March 2023. Its website states that its goal is “to understand the true nature of the universe”. With headquarters in San Fransisco, xAI officially launched in July 2023 with a team of 12, one of whom was Elon Musk:
"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,"asays the website.
While Elon Musk has yet to report any changes being made to X, CNN has reported that xAI’s Grok chatbot has already been integrated into it.
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