Musk Moves His Social Media Company X Into His AI Company xAI

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Elon Musk used an all-stock transaction to sell his social media company X (formerly Twitter) to his artificial intelligence company xAI.

In the deal, xAI is valued at $80 billion and X is valued at $33 billion, down considerably from the $44 billion Musk paid to acquire it.

Data from X user posts already feeds xAI’s artificial intelligence models. X users who pay for their accounts have access to the xAI chatbot Grok.

The main effect of this transaction will be to shield the interplay between X and xAI from scrutiny. It will no longer require agreements or contracts between businesses. As entirely internal matters within one company, the interplay will be nearly impossible for outsiders (including regulators) to see.

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