Musk Sells X To xAI: The Real Strategy Behind This Move!

Elon Musk announced on Friday night the sale of his social network X to his own artificial intelligence company, xAI. This major transaction values X at 33 billion dollars, slightly less than Twitter’s initial purchase price in 2022, but also includes 12 billion dollars in debt.

Elon Musk claims to have sold X to his own AI company

Elon Musk announced this transaction on Friday night directly on his X account. The billionaire revealed that his platform would come under the control of xAI, his artificial intelligence startup.

“The future of xAI and X is closely linked“, he stated, emphasizing the necessity to “combine data, models, computing, distribution, and talent”.

This merger occurs at a strategic moment. The Grok chatbot, created by xAI, is already operating on X, demonstrating early synergies.

According to Musk, this alliance will “unlock immense potential” by combining xAI’s expertise with X’s 200 million users, to provide “smarter experiences”.

The new merged entity would reach a valuation of 80 billion dollars. This figure represents a spectacular turnaround for X, whose value had dropped by nearly 80% according to estimates from investment firm Fidelity last October, before partially rebounding at the end of the year.

A favorable political and economic context

This reorganization comes as Elon Musk now plays a key role in the Trump administration. Appointed to head the Department of Government Efficiency, the billionaire seeks to better organize his numerous businesses in the face of criticism about his ability to manage them simultaneously.

This acquisition fits into Musk’s clear ambition to become a major player in artificial intelligence. His recent attempt to acquire OpenAI for nearly 100 billion dollars shows his willingness to compete directly with Sam Altman, the creator of ChatGPT.

The X platform has recently won back major advertisers like Amazon and Apple, who are returning after stepping back due to moderation controversies. The valuation of xAI has also skyrocketed, reaching nearly 75 billion dollars according to Bloomberg.

By merging X and xAI, Musk thus strengthens his position in the AI market, a priority sector for the Trump administration.

In summary, X’s renewed success is closely tied to the growing influence of Musk in American politics. His new governmental role makes X an essential platform for tracking the activities of the Trump administration, attracting investors and users.