 by his own company, xAI, in an all-stock transaction.){kind=link}
LOGIC.co.id – Elon Musk has once again made headlines by announcing that X (formerly known as Twitter) has been acquired by his own company, xAI. This acquisition was carried out through an all-stock transaction, now valuing xAI at $80 billion, while X is valued at $33 billion. For comparison, Musk originally purchased Twitter for $44 billion in April 2022.
In a statement shared on X, Musk emphasized that the future of both companies is now intertwined. “Today, we officially take the step to combine the data, models, computing power, distribution, and talent from both companies,” he wrote.
The Grand Strategy Behind the Acquisition
Musk explained that this merger aims to optimize the vast potential of xAI’s artificial intelligence technology with X’s broad social media reach. “This combination will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress,” he added.
While X’s current valuation is cited at $33 billion, a report from Emerge noted that Fidelity Investments previously estimated the platform’s value at only around $9.4 billion in October 2024. Although there was an increase in valuation by the end of the year, X’s worth remains 77% lower than Musk’s original purchase price.
Impact and Implications of the Merger
This move is seen as Musk’s strategy to attract new investors, improve the company’s valuation, and shift the narrative away from the tumultuous Twitter takeover. Additionally, X currently carries a debt of $12 billion, so this merger could open new opportunities in financial strategy and technological development.
Since its founding two years ago, xAI has rapidly become one of the world’s leading AI labs, focusing on developing advanced AI models and data centers. This acquisition further underscores Musk’s ambition to merge social media with AI technology, creating a more advanced digital ecosystem.