X (Twitter) Transferred to xAI in a $33 Billion Deal

Elon Musk has transferred the social media company X (formerly Twitter) to his artificial intelligence company, xAI. The total value of this transfer, including $12 billion in debt, amounts to $45 billion. Musk stated in a post that the goal of this merger is to combine the data, models, processing power, distribution network, and human resources of both entities to accelerate the development of the Grok chatbot. Grok is an AI chatbot from xAI that is considered a competitor to ChatGPT, and with this merger, it will utilize real-time user data from the X social network to improve and train its models. Prince Alwaleed bin Talal of Saudi Arabia, owner of Kingdom Holding, announced that this merger was done at his suggestion. He mentioned that with this deal, the value of his investments in both companies will reach approximately $4 to $5 billion. After Musk's acquisition of Twitter and widespread layoffs, many brands left the platform, and its revenue significantly declined. However, with Musk's increasing political influence in the Trump administration, some advertisers have returned to X in recent months. The xAI company, which has only been established for about two years, is now directly competing with companies like OpenAI, DeepMind, and other players in the AI field. Musk had previously failed in an attempt to acquire OpenAI for $97.4 billion and is now suing the company to prevent it from becoming a profit-driven entity. xAI has developed its infrastructure for training more advanced models and is seeking to enhance its capabilities in AI by launching a massive supercomputer called 'Colossus' in Memphis, USA, and utilizing data from the X platform. Meanwhile, seven American banks that had lent Musk $13 billion to buy Twitter in 2022 have managed to sell these debts to investors after two years. According to experts, the company's improved financial performance and the excitement in the AI market played a key role in this success. In the midst of these developments, an American judge did not accept Musk's request to dismiss a legal complaint related to the delay in announcing the initial purchase of Twitter shares, which some former shareholders consider a form of deception and financial damage.