Musk Divests from X
Tech billionaire Elon Musk has revealed that his artificial intelligence startup, xAI, has acquired the social media platform X, which he also oversees. The acquisition was announced in a post on X on Friday, wherein Musk confirmed, “@xAI has...
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Tech billionaire Elon Musk has revealed that his artificial intelligence startup, xAI, has acquired the social media platform X, which he also oversees. The acquisition was announced in a post on X on Friday, wherein Musk confirmed, “@xAI has acquired @X in an all-stock transaction.”
“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 stated. He characterized X as “the digital town square where more than 600M active users go to find the real-time source of ground truth.”
Musk's acquisition of Twitter, now rebranded as X, took place in late 2022. Following his takeover, he implemented various cost-cutting measures, including significant staff reductions and contract renegotiations. He also eased some content restrictions and reinstated certain banned accounts.
Musk emphasized that X has been reshaped into one of the most efficient companies globally, underscoring its potential for scalable growth. He pointed out that “xAI and X’s futures are intertwined,” highlighting the benefits of merging their resources: “Today, we officially take the step to combine the data, models, compute, distribution and talent.”
AI development has been a priority for the government under President Donald Trump, where Musk heads the Department of Government Efficiency. Analysts report that Musk is keen on positioning himself as a leader in the AI sector.
Earlier this year, he tried to spearhead a group of investors to buy OpenAI, the creator of ChatGPT, for nearly $100 billion, but the company's CEO Sam Altman turned down the offer. Musk, who co-founded OpenAI in 2015, left before it gained substantial prominence and later established xAI in 2023.
Ramin Sohrabi for TROIB News
“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 stated. He characterized X as “the digital town square where more than 600M active users go to find the real-time source of ground truth.”
Musk's acquisition of Twitter, now rebranded as X, took place in late 2022. Following his takeover, he implemented various cost-cutting measures, including significant staff reductions and contract renegotiations. He also eased some content restrictions and reinstated certain banned accounts.
Musk emphasized that X has been reshaped into one of the most efficient companies globally, underscoring its potential for scalable growth. He pointed out that “xAI and X’s futures are intertwined,” highlighting the benefits of merging their resources: “Today, we officially take the step to combine the data, models, compute, distribution and talent.”
AI development has been a priority for the government under President Donald Trump, where Musk heads the Department of Government Efficiency. Analysts report that Musk is keen on positioning himself as a leader in the AI sector.
Earlier this year, he tried to spearhead a group of investors to buy OpenAI, the creator of ChatGPT, for nearly $100 billion, but the company's CEO Sam Altman turned down the offer. Musk, who co-founded OpenAI in 2015, left before it gained substantial prominence and later established xAI in 2023.
Ramin Sohrabi for TROIB News
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