xAI Becomes Big Brother to X

Elon Musk combines AI firm and X in a $52B deal, consolidating his power

Mr Musk announced the transaction in an X post on Friday, local time, that the combination values xAI at $US80 billion ($127 billion) and X at $US33 billion ($52.3 billion), or $US45 billion less $US12 billion debt.

"xAI and X's futures are intertwined," he wrote.

"Today, we officially take the step to combine the data, models, compute, distribution and talent."

The billionaire also revealed that this acquisition values xAI at $80 billion and X at $33 billion. Prior to this new deal, X held a $6 billion stake in xAI.

Meanwhile, the combined entity will operate under a new holding company, xAI Holdings Corp, registered in Nevada, with Musk serving as president. According to Musk, this merger is expected to enable easier fundraising and streamline operations by combining data, models, compute power, distribution, and talent under a single corporate structure.

One of the most concerning elements to the X.AI official X acquisition is that this will give it real-time information and a useful data set for competing.

It also has huge implications for privacy. Assume that everything you've posted and not deleted---tweets, direct messages, copyrighted photos, location information in the metadata---is going in to eventually train Musk's new AI models.

Musk says

"xAI and X's futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI's advanced AI capability and expertise with X's massive reach."