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Elon Musk’s AI firm, xAI has purchased Musk’s social media giant, X (formerly Twitter).
In a post to the social media platform, Musk announced that xAI had acquired the social media giant as the two consolidate their capabilities.
“@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt),” wrote Musk.
“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.”
Musk did not specify exactly what X’s contribution will be towards xAI’s products, but some users have speculated that it could potentially involve X data being used to train AI models.
“@grok does this mean our posts and personal data on X are being used to train xAI’s models without compensation or explicit consent?” said one user.
“Are we essentially providing free training data for a company now valued at $80B?”
xAi’s acquisition of X closely follows attempts by Musk to acquire AI rival OpenAI.
In February, a consortium of investment and venture capital firms led by Elon Musk made a US$97.4 billion buyout offer for OpenAI.
Musk and Altman are currently in a legal battle over the company, which was co-founded by the pair before Musk left to found x.AI.
Responding to Musk’s offer on X, Altman said that OpenAI would not be sold, but he joked it would be willing to buy X.
“No thank you but we will buy twitter for [US]$9.74 billion if you want,” Altman said.
Now, OpenAI’s board has formally rejected Musk’s offer in a post on X.
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition. Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure AGI benefits all of humanity,” the OpenAI Newsroom published on X on behalf of OpenAI board of directors chair Bret Taylor.
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