"So he sold it... to himself?"— Internet reacts as Elon Musk's company xAI acquires X in a $33 billion all-stock deal
Netizens have reacted to Elon Musk's artificial intelligence firm, xAI, acquiring X (formerly Twitter) in an all-stock deal valued at $33 billion. On Saturday, March 29, the tech mogul took to X to announce the merger, which values xAI at $80 billion and X at $33 billion.
"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," wrote Elon Musk in the tweet.
Musk further mentioned in the caption:
"The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress."
As per The Economic Times, this acquisition deal would allow Elon Musk's co-investors in X, including venture capital firms like Andreessen Horowitz and Sequoia Capital, to have a share of xAI's valuation.
Several netizens have shared their thoughts on this merger between two of Elon Musk's companies. Among them, @arianatorswildt quipped about Musk striking a deal with himself, writing:
"So he sold it... to himself?"
"I’m so curious as to why X folded into xAI and not the other way around. It seems like X has the broader base as a platform and that xAI would literally just be a medium/small feature on X," opined another.
Other X users called this acquisition "smart" and saw it as the "birth of a digital empire."
"It’s a smart acquisition. XAI became worth a whole lot in a very short time. Musk uses XAI to buy X from his original Twitter backers at a measly 2% return using shares of his other company with more growth potential. So they'll end up doing much better than 2%. Presumably, Musk no longer has partners looking over his shoulder with what he’s doing at X — which I believe was the whole point AI + real-time data + distribution = unmatched power to shape narratives, drive innovation, and burn the legacy media to the ground," a comment read.
"xAI acquiring X in an all-stock move? That’s not just a business deal, that’s the birth of a digital empire. $80B for xAI, $33B for X (after wiping out $12B in debt), and now you’ve got one of the most powerful AI labs on earth fused with the digital town square for 600+ million truth-seeking users. This isn’t about just building tech, it’s about controlling the information battlefield," opined another user on X.
"Elon really is going to make 𝕏 into a digital town hall and marketplace with financial transactions. All powered by 𝕏 ai is going to be amazing. Now we just need the 𝕏 phone to be released," wrote a person.
"Congratulations. This is a huge milestone of success. I’m rooting for the mission — to accelerate human scientific discovery and advance our collective understanding of the universe," a netizen wrote.
"When will xAI be fully integrated into X, so I don’t have to exit the @x app to use the highest subscription level of @xai," asked another person.
Some other reactions on X are as follows:
"I don’t know what it means to accelerate human progress. I got tired today just trying to keep up," commented a user.
"So, Grok is worth $80 billion and X is worth $33 billion. Did Grok figure out how to farm raw money?" quipped another.
"It's the right step to take, going towards a powerful interconnected structure that even X users will part of," inferred a user.
What is Elon Musk's xAI? Exploring the company that acquired X
X.AI Corp. (also known as xAI) was founded by Elon Musk in March 2023. According to its official website, the company's goal is "to understand the true nature of the universe." Headquartered in the San Francisco Bay Area in California, xAI's expertise is in the realm of artificial intelligence.
The company officially launched in July 2023 with a team of 12 people, including Elon Musk. The team included eminent personalities in the field of AI who contributed greatly to GPT developments and Google DeepMind. Musk recruited Former Google DeepMind unit contributor Igor Babuschkin as xAI's Chief Engineer.
As per the website, the company aims to solve real-world problems.
“Our approach to rapid development and iteration allows us to innovate at breakneck speeds. We’re not interested in speed for speed’s sake—we’re here to solve real problems,” the website states.
In November 2023, Elon Musk announced xAI's first project, Grok. The feature was later made free for X users across the world, resulting in its booming popularity in recent times.