Elon Musk: xAI acquires X, valuing X at $33 billion

Key Concepts:

• X.AI acquisition by X (formerly Twitter)
• All-stock transaction
• Valuation of X.AI ($80 billion) and X ($45 billion less $12 billion in debt)
• AI model and data center development by X.AI
• X as a "digital town square" with 600 million active users
• Synergies between X.AI's AI capabilities and X's reach
• Building a platform that actively improves the user experience

Acquisition Announcement and Valuation

Elon Musk announced on X that X (formerly Twitter) has acquired X.AI in an all-stock transaction. The announcement specifies the valuation of X.AI at $80 billion. X is valued at $45 billion, but this is reduced by $12 billion in debt.

X.AI's Capabilities

Musk highlights that X.AI has rapidly become a leading AI lab within two years of its founding. Their focus is on building AI models and data centers.

X's Role and Transformation

X is described as a "digital town square" with over 600 million active users. Musk emphasizes that X has been transformed into one of the most efficient companies in the world over the last two years, positioning it for scalable future growth.

Synergies and Future Platform

The core rationale for the acquisition is to combine the data models, compute resources, distribution network, and talent of both companies. Musk believes that the advanced AI capabilities of X.AI, combined with X's massive reach, will enable the creation of a platform that actively improves the user experience.