Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Elon Musk merges x and xAI in $80bn deal to reshape AI and social media

by March 29, 2025
March 29, 2025
Elon Musk merges x and xAI in $80bn deal to reshape AI and social media

Elon Musk has announced an $80 billion merger of his artificial intelligence venture xAI with social media platform X, formerly Twitter, in a move he claims will “unlock immense potential” by combining AI capabilities with real-time user interaction.

The non-cash transaction values xAI at $80 billion and X at $33 billion — or $45 billion when including $12 billion in debt. That figure marks a slight increase over the $44 billion Musk paid to take the platform private in 2022, raising fresh questions about the valuation of X amid ongoing financial challenges.

Musk said the merger would allow the two businesses to better share resources, with X gaining deeper access to AI tools such as chatbot Grok, while xAI will be able to tap into X’s 600 million-strong user base and vast data pool. He described the entities as “intertwined”, stating that the combined company would offer “smarter, more meaningful experiences to billions of people” while remaining committed to “seeking truth and advancing knowledge”.

The merger comes just months after xAI was reported to be in talks to raise $10 billion at a $75 billion valuation. The company, which Musk founded in 2023, has already launched several products including the Grok chatbot and Aurora, a text-to-image model. Early backers include Silicon Valley heavyweights Sequoia Capital and Andreessen Horowitz.

Critics, however, are questioning the rationale behind the deal — particularly given xAI’s lack of a clear revenue stream. Bruce Daisley, former European head of Twitter, called it “a real signal that the AI market is a bubble,” suggesting that Musk may be attempting to shore up X’s valuation amid falling ad revenues and pressure from early investors.

One such investor, Saudi Arabian billionaire Prince Alwaleed bin Talal, confirmed he had requested the merger, citing his role as the second largest investor in both companies. He said the value of his holdings post-merger would exceed $4–5 billion, adding that “the meter is running”.

Since Musk’s acquisition of Twitter and its rebrand to X, the platform has seen a dramatic overhaul. Musk cut thousands of jobs, closed offices, and repositioned the platform as a free speech haven. Although many high-profile advertisers initially pulled out, a recent Emarketer report suggested that X may now be poised for its first year of ad revenue growth under Musk’s ownership.

Despite the mixed results, Musk insists the transformation is working. “X is the digital town square… transformed into one of the most efficient companies in the world,” he said. “xAI has rapidly become one of the leading AI labs, building models and data centres at unprecedented speed and scale.”

X CEO Linda Yaccarino echoed Musk’s optimism, saying: “The future could not be brighter.”

The deal was advised by Morgan Stanley, which served as financial adviser to both X and xAI.

With Musk also heading Tesla, SpaceX, and now serving as Donald Trump’s appointee to the Department of Government Efficiency (Doge), the tech mogul’s latest move cements his ambition to create a tightly integrated ecosystem spanning transportation, AI, aerospace, and digital communication.

Read more:
Elon Musk merges x and xAI in $80bn deal to reshape AI and social media

0
FacebookTwitterGoogle +Pinterest
previous post
Sales rise at Euan Blair’s Multiverse but annual losses widen to £60m
next post
The Benefits of Hiring a Local Car Accident Lawyer in Missouri

You may also like

Business confidence at lowest in 21 months

November 30, 2022

Farcical loophole sees tax avoidance schemes removed from...

April 17, 2023

UK investors brace for recession before the end...

August 24, 2022

How to Create a Payment Gateway That Boosts...

October 21, 2024

Car finance crisis set to cost billions and...

December 9, 2024

Value of UK business tax breaks hits record...

November 14, 2022

Top 10 Cybersecurity Best Practices to Reduce Your...

June 19, 2023

Graduates set to face fewer jobs and lower...

October 30, 2023

Retailers demand scrapping of ‘£2bn’ waste strategy policy...

February 24, 2023

5 Movies that Your Kids Will Love This...

August 2, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • America’s Not-So-Secret Secret Police

      August 7, 2025
    • Poll: Nearly 1 in 4 Americans Think They Have a Personal Social Security Account

      August 7, 2025
    • Republican senator claims RFK Jr. mRNA vaccine decision undermines Trump agenda

      August 7, 2025
    • Who is Anita Dunn? The Biden confidante who clashed with Hunter grilled in House autopen probe

      August 7, 2025
    • Case v. Montana Brief: Limit Loopholes to the Fourth Amendment

      August 7, 2025
    • Trump opens $9tn US retirement market to crypto in landmark executive order

      August 7, 2025

    Categories

    • Business (8,704)
    • Investing (2,184)
    • Politics (16,333)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved