Musk’s xAI startup swallows up X social network in surprise deal
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A woman holds a smartphone displaying the logo of social network X (formerly Twitter). — AFP/File
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According to Bloomberg, Elon Musk said that the launch of his artificial intelligence has achieved the X -platform, which he also controls at a price of $ 33 billion, which has turned a surprise to the social network, known as Twitter.
The billionaire wrote in a post on X on Friday that “the value of this combination is XAI is 80 billion and x 33 billion dollars.”
The agreement gives a new joint institution called Zye Holdings, which costs more than $ 100 billion, which does not include a loan, according to the person familiar with the arrangement, who asked not to identify because the terms are not public. Other people said Morgan Stanley was the only banker in the deal, representing both sides.
In the expense of Kasturi, this contract smooth its business and strengthens the relationship between the former Twitter and Xi, which has used information to handle its chatboat from the social network. The agreement also offers a resolution for other supporters of X after several months of uncertainty over their investment state, as the Musk changes resulted in the costs of consumers and advertisers.
The Musk posted, “The future of Zai and X is interconnected.” Today, we formally step to combine data, models, computations, distributions and capabilities. This collection will open a lot of abilities by combining XAI’s advanced AI capacity and skills with the mass reach of X. “
The world’s richest man, Musk, acquired Twitter at the end of 2022 for $ 44 billion, a transaction that included debt. After controlling the platform, he went fast to reduce the costs by reducing thousands of jobs, closing offices and re -negotiating contracts. He also tried to make Twitter more compatible with “free speech absolute” by eliminating some content restrictions and allowing some prohibited accounts to return.
But Musk also eliminated an important part of the network’s advertising business in the process. Marketers fled the site with the fear that their developed posts would be seen with consumers’ unpleasant content. Even despite the expected rise in sales in 2025, the X’s advertising business is still likely to be almost half half when Musk acquired the company.
Over the past one year, Musk has used this service to promote Grook, which is a chatboat created by Z, partially, with X users posts. Startup is competing with AI firms like Open, whose musky laid a joint foundation with the company before the division.
“It helps to connect the system well,” said Wolf Research analysts, who consider the deal positive for both Musk’s businesses. By providing access to a large amount of training data, “it gives a unique advantage to Grook” while also allows Zee to control – or even cut – this data flows to other companies.
Deep Water Asset Managing Managing Partner and Jane Munster, an investor in both companies, wrote on X that the contract is “very meaningful” by giving Xi to Xi’s proprietary data set, which has no access to other companies. He posted, “Grook brings the brain. “Open is the distribution of brain and brand (eg, Apple), but it lacks X’s proprietary data. Long -term Edge: Z.”
The X spokesperson refused to comment on a post by XK CEO Linda Yakino, pointing to Bloomberg. He wrote, “The future cannot be bright. It is not clear whether it will affect its role as the CEO of the X -X -X.
Musk has a long history to divide investors, technology and employees and combine its various operations. In addition to its AI business, X user data training, San Francisco also shared the office space with X in the Bay Area. X also collected $ 6 billion shares in Xi by January, which added to the business.
Zee investors include Sequrea Capital, Anderson Horwiots, Federation Investment and Blackrock Inc. Some of the AI startup investors were also supporters of X, including Anderson Horweights and Sequrea.
Bloomberg Intelligence Analyst Mandeep Singh wrote on Friday that the acquisition of XAI’s X could create a framework for deals related to other social networking companies.
Singh wrote, “This agreement could be a sign that rivals, including an openness, anthropic, anxiety and misunderstanding, will be pursuing contracts to increase their customers’ reach and distribution.” “We believe that small social media players will actively seek alliance with large language model providers, who give billion 80 billion premium values to Xi, which is more than the shared market values of snap, Pennist and Reddit.”
As the owner of the X, most of the Musk’s reign, it is believed that the cost of the social networking company is less than $ 44 billion, which the Musk paid at the end of 2022. For example, Federation declared its equity stake in the company in November more than 70 %.
