Elon Musk, founder and CEO of Tesla, SpaceX, Starlink, and other companies, announced on X that X was being sold. Elon Musk’s xAI buys X (formerly Twitter), Musk’s social media platform for $33 billion. You may now be confused? So, let’s understand why Musk’s company bought Musk’s Social platform? What is xAI? What is the purpose? and More.
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Elon Musk’s xAI buys X.
Elon Musk, world’s wealthiest personality, took micro blogging platform X (formerly Twitter) to announce the X’s acquisition by xAI. Elon Musk’s xAI, an Artificial Inteligence lab, has bought X (formerly twitter), a micro blogging social media platform in an-all stock transaction.
xAI buys X for a $33 billion. This deal values X at $33 billion or $45 billion including $12 billion debt. Elon Musk writer on X, “@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).”
As of India Todya report, “The choice of $45 billion is not a coincidence,” said DA Davidson & Co analyst Gil Luria. “It is $1 billion higher than the take-private transaction for Twitter in 2022” and he can share the value of the xAI business with Twitter co-investors.
Why did xAI acquire X?
X’s acquisition by xAI is Elon Musk’s strategic move. Musk explains in the same post that xAI has emerged as a most effective AI lab in the world, contributing in data centers and models widely.
“Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale, “ Musk wrote.
On the other side, he highlighted the X’s vast community of 600 millions users, who are active to find out real time source of ground truth.
“X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth,” he added.
Basically, Elon Musk want to combine these two great platform, to deliver a smarter, and meaningful experience to billions of people.
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. The combined company 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, “Musk clarified.
xAI: A Brief Detail.
xAI, an Artificial Intelligece corporation, was founded by Elon Musk on 9 March 2023. Since it launching it was purposed to provide advanced Aritficial Models competing with major players such as Gemini, Meta, Microsoft.
Within 2 years xAI became one of the leading AI lab in the world, building models and data centers with an incredible speed and scale. Just after launching, on Novermeber 4, 2023, xAI unveiled Grok, an AI chatbot that was purposely designed for real time responses and engage with users in conversational manner.
As of reports, Grok gradually became the integral part of X (Twitter). Users frequently participated in discussions, collected information, and generated insights. To improve the AI models capabilities, xAI used the Social Media X’s vast data, taking Grok’s ability to the next level.
This integration became a key for xAI’s Grok, making it as a prominent and widely used feature in the world. That directly riveled Google, Meta, and Microsoft.
Accroding to xAI’s website, company wants give AI models that will contribute in Human’s comprehension, and capabilities. “Our approach to rapid development and iteration allows us to innovate at breakneck speeds. We’re not interested in speed for speed’s sake—we’re here to solve real problems,” the site reads.
More recently, the company secured an additional $10 billion in funding, further driving its valuation to an impressive $75 billion, according to a report in The Guardian.
Netizen’s Comments On Integration.
Users have different types of comments on xAI and X’s integration, where it is determined to leverage X’s 600 million vast active users data to train AI model’s and provide better user experience.
One user wrote, “@grok does this mean our posts and personal data on X are being used to train xAI’s models without compensation or explicit consent? Are we essentially providing free training data for a company now valued at $80B?”
One further raised a concern, and wrote, “If
@xAI is “The world’s smartest AI” then why does it still use fake partisan defunct
@FiveThirtyEight “reviews” to defame and demean our outstanding record for ACCURACY over multiple election cycles … you can check it out …”
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