Overview

• Elon Musk's AI company xAI has merged with his social media platform X in a $113 billion all-stock deal, including $12 billion in debt.
• The merger allows xAI to utilize X’s real-time user data to enhance its AI models, aligning with trends seen in companies like Meta Platforms.
• Critics highlight potential conflicts of interest, as Musk controls both companies and the same advisors represented both sides of the transaction.
• Valuations of $80 billion for xAI and $33 billion for X have been called into question, with xAI recently valued at $45 billion in private markets.
• The deal is seen by some analysts as a bailout for X, which has faced declining revenue and stagnant user growth since Musk's 2022 acquisition.