Musk's xAI buys his social media platform X

Elon Musk announced that his AI venture, xAI, has acquired X. X was formerly known as Twitter.

In a post on X Friday, Musk shared details of the deal. The all-stock transaction values xAI at $80 billion and X at $33 billion. Musk had purchased Twitter for $44 billion in 2022.

Musk stated, "xAI and X's futures are intertwined." He emphasized the importance of combining data, models, compute, distribution, and talent.

This acquisition may protect investors who helped him buy X from losses. Both companies are privately held and share major investors and resources.

Musk believes the combined company will enhance experiences for billions. He aims to stay true to their mission of seeking truth and advancing knowledge.

xAI has used data from social media posts on X to train its models. Its chatbot Grok is a key feature on the platform.

Analyst Paolo Pescatore called the move sensible amid rising investments in AI. He noted trends in data centers and computing as factors driving this decision.

Musk is currently involved in a legal battle with OpenAI. He co-founded OpenAI in 2015 with CEO Sam Altman.

Last year, Musk sued OpenAI and Altman for deviating from their original mission. He criticized their shift toward a for-profit model.

On Friday, the Wall Street Journal reported that OpenAI is finalizing a $40 billion funding round with SoftBank. This funding depends on completing its restructuring into a for-profit entity.

OpenAI did not respond to BBC inquiries about this arrangement. Critics argue that Musk's lawsuit stems from his desire to control ChatGPT.

Earlier this year, Musk's consortium made an unsolicited $97.4 billion takeover bid for OpenAI. Altman rejected the offer, stating that the company is not for sale.

Meanwhile, Musk has become more involved in politics recently. He now serves as President Donald Trump's advisor.

He has led efforts to reduce federal spending while contributing millions to Wisconsin’s Supreme Court race.

Wisconsin's attorney general asked a court to block Musk from distributing $1 million checks to voters ahead of the election.