New Delhi: Elon Musk is making another big move, his AI company, xAI, is buying the social media platform X (formerly Twitter) in a huge $33 billion deal. But instead of paying cash, xAI is handing over shares of its own company to close the deal.
So why is Musk doing this? He believes that bringing together xAI’s artificial intelligence with X’s massive user base will create exciting new possibilities. His goal is to make the platform smarter and more useful while sticking to his bigger mission of spreading truth and knowledge.
Right now, xAI already uses X posts to help train its AI models, and premium X users get access to xAI’s chatbot, Grok. Now that xAI fully owns X, we can expect even more AI-powered features in the future. Musk hasn’t shared any big changes yet, but it’s clear he wants to take X in a more AI-driven direction.
The deal also tells us a bit about how much these companies are worth. xAI is valued at around $80 billion, while X is priced at $33 billion. Since both are private companies, they don’t have to reveal all their financial details, but Musk has confirmed these numbers.
This move also puts xAI in a stronger position to compete with other AI giants like OpenAI, the company behind ChatGPT. Musk has been vocal about wanting to challenge them, and now, with X under his belt, he has an even bigger platform to do it.
Interestingly, this announcement comes just as Musk is stepping down from his government role as head of the Department of Government Efficiency (DOGE). He was appointed to the position by former President Donald Trump and has been working on cutting the U.S. deficit. His last day on the job will be at the end of May.
While it’s unclear exactly how this will change X for everyday users, one thing’s for sure, Musk has big plans.
