Musk merges startup xAI and Twitter, betting on AI to revitalize social media

What just happened? Elon Musk has orchestrated another move in his sprawling business empire, announcing on Friday that his artificial intelligence firm, xAI, has acquired X (formerly Twitter). The all-stock transaction values X at $33 billion, including $12 billion in debt, and xAI at $80 billion, creating a combined entity Musk says will "unlock immense potential" and provide "smarter, more meaningful experiences" for users. In a post on X, Musk stated, "The futures of xAI and X are interconnected. Today, we officially take the step to merge our data, models, computing power, distribution, and talent." This deal marks a significant moment for both companies, which have been on divergent trajectories since Musk acquired Twitter in 2022 for $44 billion. Following his takeover, X faced a series of challenges, including plummeting advertising revenue, mass layoffs that reduced its workforce by 80 percent, and controversial policy changes that alienated major advertisers. Also see: Fea ... Read full article.