Last Friday, unexpected news and totally surprise. Elon Musk’s Startup, acquired X, also from Elon Musk. The tycoon announced the operation highlighting how that made Xai an estimated assessment (according to him) of 80,000 million dollars, while that of X was 33,000 million dollars (45,000 million except 12,000 million debt). The question, of course, is what this movement is due and what can we expect from now on.
Because. According to Musk, the future of Xai and X is intertwined, and this fusion allows “combining data, models, computing, distribution and talent” of both companies. What it certainly allows is to ensure that X accounts are integrated in XAI’s, with much more economic projection. It is true that X is a company that seems to recover land, but it has had a bad time since Musk bought it.
A natural fusion. As indicated in The New York Times, both companies are private and already shared numerous resources, such as their engineers. Grok, XAI’s chatbot, is trained with data published by X and that are public in this social network. Andrew Verstein, a professor at the UCLA Law School commented on and daily how what seems to say Musk with this movement is “I have a company that may not be bankrupt, but it is not the jewel of my crown. I will Buy it so that it seems a success using one of my other companies.”
Actions that change hands. According to The Wall Street Journal, the actions of X and XAI will be replaced by new shares of a holding called XAI Holdings Corp. There is another potential advantage derived from this fusion, according to analysts: it will be easier to lift new investment rounds for that combined entity.
It already happened before. In 2016 he used actions from his electric car company, Tesla, to buy Solarcity, a company dedicated to renewable energy in which Musk was the highest shareholder and in which his cousin Lyndon Rive was the CEO.
Many shared resources (and opaque) among their companies. Companies created or managed by Elon Musk have always made use of resources shared. Being in many cases private, several of these movements are opaque, and for example in August 2024 the movement of employees was revealed from Tesla to Xai and also of GPUS that I used to use in Tesla to use them in X or XAI. All with an objective: accelerate in his plan to convert Xai into a reference in the segment of artificial intelligence.
The relationship between Trump and Musk facilitates everything. The months following the inauguration of the new presidential cycle of Donald Trump have been beneficial for Musk. The valuation of X has risen, to a large extent because the platform is now more influential. The tycoon indicated in the announcement of the operation as X has more than 600 million active users.
Grok, from Xai showed the way to integrate into x. During a good part of their existence, XAI’s models were limited to X payment subscribers, but for months the Chatbot Grok 3 has been available for all X users, including those who use the free version. XAI takes advantage of the activity in X to train its models, and that makes this integration even more natural now that both companies have merged.
What can we expect. The acquisition should not influence the operation of both companies for users, but one thing is clear: if they previously shared resources in a more opaque way, they will now do it comprehensively. The XAI AI models will be nourished by the data published in X more than ever, and in turn x will benefit from the improvements that are implemented in models such as Grok 3 and that are available from the platform.
The overcoming always on the horizon. We have been talking about an X potential from X, and that fusion of Xai with X makes this project now closer. It already has covered content and the social network, but many areas are missing, and one above all: to be able to use X as a payment platform, something he has pointed out on more than one occasion.
In WorldOfSoftware | Murphy’s law conspires against Elon Musk: if something has been able to happen to their companies this week, it has happened
