XAI of Elon Musk acquired X in an agreement that valued the social networks platform at $ 33 billion and allowed the value of its artificial intelligence firm to be shared with its coinversors in the company previously known as Twitter.
The agreement could also help XAI’s ability to train his chatbot known as Grok.
“The futures of Xai and X are intertwined”, Musk, which also directs the automobile manufacturer Tesla and Spacex, wrote in an X publication: “Today, we officially take the step to combine the data, models, computes, distribution and talent.” He said that the combination values ”XAI to $ 80 billion YXA $ 33 billion ($ 45 billion less debt of $ 12 billion)”.
The representatives of X and XAI did not immediately respond to the requests for comments. Much of the details of the agreement are still clear, such as how X’s leaders would be integrated into the new company or if there would be regulatory scrutiny.
Musk, the richest man in the world, is also a nearby ally of the president of the United States, Donald Trump, and directs the government’s efficiency department.
Saudi Arabia investor, Prince Alwaleed Bin Talal, owner of the Kingdom Holding investment company, said he had requested development.
He pointed out that his companies are the second largest investors in X and XAI. “After this agreement, the value of our investments is expected to reach between $ 4-5 billion … and the meter is running,” he said in an X publication.
Da Davidson’s analyst Gil Luria said that the price of x of $ 45 billion when the debt was included was not a coincidence.
“It is $ 1 billion higher than the transaction-private for Twitter in 2022”.
An XAI investor that declined to be identified said they were not surprised by the agreement, seeing it as an musk that consolidates its leadership and management in its own companies.
Musk did not ask the approval to investors, but told them that the two companies had been collaborating closely and that the agreement would boost a deeper integration with Grok, said the investor.
Openai rivalry
Musk’s Startup XAI launched less than two years ago and recently raised $ 10 billion in a financing round that valued the company at $ 75 billion, according to a media report.
Compete with Operai tastes backed by Microsoft, as well as with the Chinese startup Depseek.
In February, Musk, 53, made an offer of $ 97.4 billion with a consortium for Openai, which was rejected and has sued to prevent the Chatgpt manufacturer from becoming a non -profit organization to a profit business. A judge this month denied Musk’s request from a preliminary court order that would avoid change.
As competition in AI intensifies, XAI has increased its data center capacity to train more advanced models, and its supercomputer cluster in Memphis, Tennessee, called “Coloso”, is promoted as the largest in the world.
XAI presented Grok-3, the last iteration of his chatbot, in February.
The X platform could serve to distribute even more XAI products, while providing a real -time diet of reflections, screenshots and other user data.
After buying Twitter, Musk destroyed the company’s workforce, which led advertisers to flee the platform and a rapid decrease in income. Recently, brands have returned to X as Musk’s influence on Trump administration grows.
The seven banks that extended $ 13 billion in loans to Musk to buy X kept the debt in their books for two years until they could sell everything at the same time last month, according to a source familiar with transactions.
This was possible after an increase in investors’ interest in exposure to AI companies together with the improved operational performance of X in the two previous quarters, among other factors, according to two people familiar with the matter.
After the merger, the investors who bought the debt of the banks will benefit, said Espen Robak, founder of Pluris Valuation Advisors, who specializes in illegid assets.
“Surely the debt is worth more now, if not completely paid.”
Separately, an American judge on Friday rejected a Musk offer to dismiss a lawsuit claiming that he had disappointed former Twitter shareholders waiting for too much time to reveal his initial investment in the company.
