The world’s richest man, Elon Musk, said on Monday he has sold his social media platform, X, to xAI, his artificial intelligence company, in an all-stock transaction.
xAI will pay $45 billion for X, slightly more than Musk paid for the microblogging platform in 2022.
The new deal includes $12 billion of debt in a move that firmly places X under the umbrella of Musk’s AI startup.
“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).
“Today, we formally take the step to integrate the data, models, computation, distribution, and talent,” the billionaire wrote on his X handle.
This comes weeks after Musk abandoned moves to secure the sum of $44 billion in funding to address the platform’s challenges, particularly in maintaining advertiser support.
There were reports the platform was negotiating to secure funding from investors after Fidelity Investments significantly reduced its valuation of Twitter by about 70% in December but later shelved the move.
Source: Ripples Nigeria
