In a bold move, Elon Musk has announced that his AI company, xAI, has officially acquired X (formerly Twitter) in a deal valued at $33 billion. This acquisition highlights Musk’s vision of merging social media and artificial intelligence, suggesting that the platform will increasingly rely on users’ data to fuel AI development.
The deal, disclosed by Musk in a post on X on Friday, is an all-stock transaction. He stated, “@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).” This marks the latest development in Musk’s ongoing efforts to integrate xAI’s capabilities with X’s platform.
Since Musk’s Twitter takeover in 2022, X has progressively aligned itself with his AI venture, with policies allowing the collection of user data to train AI models. Last year, X made it nearly impossible for users to opt out of data collection, a move that raised eyebrows among privacy advocates. X has also integrated Grok, an AI chatbot developed by xAI, into the platform. Grok’s latest iteration, Grok 3, comes equipped with new features like a search function and tools for problem-solving in math, science, and coding.
While Musk claims that the merger will unlock “immense potential” by combining xAI’s AI expertise with X’s massive reach, critics are wary about the privacy implications. Gary Marcus, a cognitive scientist, pointed out that user data, including everything from posts to direct messages, could now be used to train xAI’s models. This has led some to raise concerns about privacy and data misuse, with one critic calling the platform a “human battery in the Matrix.”
The deal also casts doubt on the value of Musk’s original Twitter acquisition. With X’s valuation now significantly reduced due to a decline in advertisers and rising concerns about hate speech, some see this as a way for Musk to salvage the financial troubles caused by overpaying for Twitter in 2022. Mark B. Spiegel, a vocal critic of Musk, even called the acquisition “one of the most egregiously overpriced transactions in history.”
Despite the backlash, Musk remains optimistic. He wrapped up his announcement with a vague statement: “This is just the beginning.” For now, Musk’s ambitious AI and social media vision continues to unfold, but whether this move will benefit users or just further fuel Musk’s business empire remains to be seen.
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