The acquisition of the social media platform X by Elon Musk's AI startup xAI has drawn the attention of EU regulators, which could lead to significant fines.
xAI Acquires X
Reports indicate that the European Commission has initiated a new investigation into X following the $33 billion acquisition by xAI. This has given xAI an estimated value of $80 billion and shifted X under the control of the AI startup.
Regulation and Potential Fines
Under the Digital Services Act (DSA), the EU can fine digital firms up to 6% of their annual global turnover for non-compliance. The European Commission is considering whether to include revenues from Musk's other ventures in calculating potential fines.
Expectations for EU Commission's Decision
Regulators have yet to issue their first major penalty under the DSA. A decision regarding X’s case is expected before the Commission's summer recess in August, following an investigation starting in 2023.
The acquisition of X by Elon Musk's xAI is attracting EU regulatory attention, and potential fines could significantly alter the landscape of tech company relations with EU law.
