Elon Musk has once again shaken the tech industry with his startup xAI acquiring the platform X (formerly Twitter) for a staggering $33 billion.
The Merger of xAI and X
Elon Musk's xAI has completed the acquisition of platform X for $33 billion, emphasizing the strategic unification of xAI's cutting-edge AI technology with X's vast audience and resources. Musk believes this will unlock immense potential for both companies, stating their futures are now closely intertwined.
Background of the Deal
The deal is likely a stock swap, as Musk owns both companies. Major investors include venture firms like Andreessen Horowitz, Sequoia Capital, Fidelity, Vy Capital, and Saudi Arabia's Kingdom Holding Co. xAI recently secured $6 billion in funding, bringing its valuation to $40 billion. Musk purchased Twitter (now X) for $44 billion in 2022, and reduced costs as well as content moderation.
Musk's Role in Tech and Government Reforms
Leading Tesla, SpaceX, xAI, and overseeing X, Musk has also become a key figure in Donald Trump's administration. Appointed head of the Department of Government Efficiency (DOGE), he's focused on cutting government jobs, reducing spending, and rolling back regulations. This position gives Musk the power to implement changes beneficial to his business empire.
The acquisition of platform X by xAI marks a new chapter in tech development, uniting AI and social media for new heights. Under Elon Musk's leadership, significant changes in both tech and government sectors are anticipated.
