Elon Musk said on Friday that he had sold X, his social media company, XE to XE, his artificial intelligence start-up, in an unusual system, which reflects financial maneuvers within the world’s richest man’s business empire.
The All-Stock deal gave XAI to $ 80 billion and $ 30 billion at x, Mr. Musk said that the price of X. X was below $ 44 billion which Shri Musk paid for the social media company in 2022, but more than an evaluation of $ 12 billion that some investors of X have recently assigned it. The final assessment of XAI was about 40 billion dollars in the December fund raising phase.
Both companies are organized privately and already share important resources, such as engineers. A chatbot called Groke created by XAI has been trained on data posted by X users and is available last month, bankers for X told investors that some revenue of the social media company came from XAI.
Mr. Musk wrote in his post that “the futures of XAI and X are interconnected.”
“Today,” he said, “We officially take steps to combine data, models, calculations, distribution and talent.” “The joint company will provide more meaningful experiences to billions of people during our main mission to search for truth and carry forward knowledge,” he said.
The deal shows how Mr. Musk can play with different parts of his business empire. In this case, he twisted a company that was losing the value, x, the value that was receiving, XAI. Mr. Musk first made a similar maneuver in 2016, when he used a clean power company, his electric car company Tesla’s stock to buy a solidity, where he was the greatest shareholder and his cousin, Lindon Riv, Chief Executive.
While Tesla is a publicly trading company that shareholders should disclose their finance and other information, most of the companies of Mr. Musk are organized privately and are more opaque. These include rocket manufacturer SpaceX, Tunling Start-Up The Boring Company and Brain Interface Company Neurlink. Mr. Musk often moves resources and employees among his companies, defying traditional business norms and operating its various companies as a large musk venture.
X Chief Executive Officer Linda Yakarino wrote on X of the deal: “The future cannot be bright.” X refused to comment.
X and XAI are on different trajectory. X is very widely known, and Mr. Musk has used it as a Ram to carry forward his political views, supporting the stage for President Trump and support for his government cost-cut attempt, is known as the department’s efficiency department.
But X’s financial approach has declined as Mr. Musk bought the company. Most of the social media site’s revenue comes from advertising, but has been careful to spend on the brand X as Mr. Musk has canceled the dispute and throw the company’s content moderation rules and throw it in favor of the environment to do anything more.
According to Fidelity, X’s valuation was $ 12 billion in December, one of the investors participating in the acquisition of Mr. Musk.
While some advertisers have recently returned to X, Mr. Musk expects a favor as a close advisor to Mr. Trump, the company has not yet achieved financial stability. In January, Mr. Musk told the employees that the revenue was “ineffective” and the company was barely breaking. “
According to an internal email viewed by the New York Times, this month, X continued to struggle to hit its revenue goals. By 3 March, X gave $ 91 million advertisements this year, The message stated below the target of its first-speech of $ 153 million.
Email said, “It’s time to sprint for the finish line,” urging the sale of people to take momentum.
The company also rooted in Memphis, where what Mr. Musk has said will be the largest supercomputer in the world.
Shri Musk started Xai in 2023 to compete with AI Lab, which he co-established and makes it chatgate. Mr. Musk left Openai in 2018 and has since filed a suit on the company and offered to achieve it, arguing that he could only make AI with responsibility that would not destroy humanity.
(New York Times sued OpenaiI and Microsoft for copyright violations of news material related to the AI system in December 2023. OpenAI and Microsoft denied claims.)
Last month, X bankers sold the company’s debt, a task they had seen almost impossible before the inauguration of Mr. Trump. Investors who bought the loan were told that the revenue of Xai had improved, in the part because XAI was paying XAI to license its data, essentially funding funding funding from one of the companies of Shri Musk.
The news of Friday’s deal was observed inside the X.
“This is a very exciting step for all of us,” Ms. Yarcarino wrote to the employees in an email that was seen by the Times.
Ryan Mac Contribution reporting.
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