Billionaire investor Elon Musk has transferred ownership of his social media platform X to his AI startup xAI in an all-stock deal. This move has sparked various reactions and coincides with a court ruling related to a lawsuit against Musk.
Transfer of Ownership of X to xAI
On March 28, Musk announced the transfer of X to his startup xAI in a full stock deal. This decision marks a significant step in the evolution of both companies, with future plans closely tied, especially in terms of data integration and scientific capabilities.
Lawsuit and Divergent Opinions
Amidst this deal, a court rejected Musk's attempt to shut down a lawsuit alleging defrauding of former Twitter shareholders. Cinneamhain Ventures partner Adam Cochran noted that this may pose additional risks to xAI.
Valuations and Future Projects
Elon Musk stated that xAI is valued at $80 billion, while X is valued at $33 billion. Musk emphasized that their combination will create a platform to accelerate human progress. However, Adam Cochran called the valuation of xAI's stock inflated and expressed doubts about the soundness of such a deal.
The sale of X to xAI opens up new opportunities for both organizations but also raises several legal and financial questions that need further analysis and discussion.
