Elon Musk Merges xAl and X in $113B Mega-Deal - What This Means for Al, Twitter, and His OpenAl Feud

Elon Musk

Musk's Al Empire Expands Elon Musk announced Friday that his artificial intelligence companyxAl has acquired social media platform X (formerly Twitter) in an all-stock deal valuing the combined entities at **113 billion * *(80B for xAI, $33B for X). The move tightens Musk's grip on two pillars of his tech empire-Al development and real-time data.

Why This Matters

• Data Synergy: xAl has heavily relied on X's billions of social posts to train its Al models, including chatbot Grok.

• Investor Protection: The merger could shield X's backers (who funded Musk's $44B Twitter buyout in 2022) from losses by linking X's future to Al's explosive growth.

Musk's Vision: "xAl and X's futures are

intertwined," Musk posted, promising "smarter, more meaningful experiences" for users.

OpenAl Feud Heats Up

The deal comes as Musk escalates his legal battle with OpenAl, which he co-founded in 2015. Recent developments:

• Musk sued OpenAl in 2023, accusing it of abandoning its open-source mission.

Reports reveal OpenAl is finalizing a $40B funding round with SoftBank-contingent on becoming a for-profit entity (Wall Street Journal).

• Musk's unsolicited $97.4B bid to buy OpenAl was rejected by CEO Sam Altman earlier this year.

Political Undertones

Musk's business moves coincide with his growing political influence:

• He's emerged as Donald Trump's key ally, advising on federal spending cuts.

He's emerged as Donald Trump's key ally, advising on federal spending cuts.

Currently in Wisconsin, Musk faces legal pushback after funneling millions into a state Supreme Court race. The AG seeks to block his plan to distribute $1M checks to voters pre-election.

Analyst Take

"Merging X and xAl aligns with the Al gold rush-data centers and compute power are today's oil,"said Paolo Pescatore (PP Foresight). Critics, however, see Musk's OpenAl lawsuit as a power play after losing control of the ChatGPT maker.