The Elon Musk technological billionaire acquired the X social media platform in an agreement that values the social media platform at 33 billion dollars and makes it possible to share the value of his artificial intelligence company with his co-investors in society formerly known as Twitter.
The agreement could also help Xai’s ability to form his chatbot known as Grok.
“The future of Xai and X are intertwined,” wrote Musk, who also directs the automaker Tesla and SpaceX, in an article on X, adding: “Today, we are officially doing the measure to combine data, models, calculation, distribution and talents.”
He said that the combination values ”XAI at $ 80 billion and X at $ 33 billion ($ 45 billion in 12 billion dollars)”.
The representatives of X and XAI did not immediately respond to requests for comments. A large part of the specificities of the agreement remain clear, such as the way in which X managers would be integrated into the new company or if there would be a regulatory examination.
Musk, the richest man in the world, is also a close ally of US President Donald Trump and heads the government’s ministry of efficiency.
The Saudi investor, Prince Alwaleed Bin Talal, owner of the investment company Kingdom Holdom, said that he had asked for development.
He noted that his companies were the second largest investors in X and XAI. “After this agreement, the value of our investments should reach between $ 4 and $ 5 billion (…) and the counter is running,” he said in an article on X.
Da Davidson’s analyst Gil Luria said that $ 45 billion’s price of X when the debt was included was not a coincidence. “It is $ 1 billion more than the private transaction for Twitter in 2022.”
An investor in XAI who refused to be identified said that they were not surprised by the agreement, considering him as a musk consolidating his leadership and his management in his own companies.
Musk did not ask for the approval of investors, but told them that the two companies were closely collaborated and that the agreement stimulated more in -depth integration with Grok, said the investor.
Rivalry with Openai
The Musk startup XAI was launched less than two years ago and recently collected $ 10 billion in a financing cycle that estimated the company at $ 75 billion, according to a media report.
He competes with people like Openai on Microsoft’s back as well as with the Chinese startup Deepseek.
In February, Musk, 53, made an offer of $ 97.4 billion with a consortium for Openai, which was rejected and continued to prevent the Chatgpt manufacturer from converting a non -profit organization into a for -profit business. A judge rejected this month the request for Musk for a preliminary injunction which would prevent change.
While competition in AI is intensifying, XAI has increased its data center capacity to form more advanced models, and its supercomputer cluster in Memphis, Tennessee, called “Colossus”, is the largest in the world.
XAI presented Grok-3, the last iteration of his chatbot in February.
The X platform could be used to distribute XAI products more, while providing real-time flow from reflections, screenshots and other user data.
After buying Twitter, Musk emptied the company’s workforce, encouraging advertisers to flee the platform and a rapid drop in income. Recently, the brands have returned to X when Musk’s influence in the Trump administration is developing.
The seven banks that extended $ 13 billion in Musk loans to buy X have kept debt in their books for two years until they can sell it both last month, according to a familiar source with transactions.
This was made possible after an increase in investors’ interest in exposure to AI companies as well as improving X’s operational performance during the previous two quarters, among other factors, according to two familiar people with the problem.
After the merger, the investors who bought the banks debt will benefit, said Espen Robak, founder of multi -valuation Advisors, specializing in illiquid assets. “It is sure that the debt is worth more now, if not completely reimbursed.”
In addition, an American judge rejected a Musk offer on Friday to reject a legal action claiming that he had frauded former Twitter shareholders pending too long to disclose his initial investment in society.