Elon Musk Merges xAI and X in $113 Billion Deal to Form xAI Holdings Corp.

The consolidation aims to integrate AI with social media, raising growth potential while sparking privacy and regulatory concerns.

The merger values xAI at $80 billion and X at $33 billion, including $12 billion in debt, creating a combined $113 billion entity under xAI Holdings Corp.
The deal transitions X investors into the rapidly expanding AI sector, offering stakes in xAI and its advanced AI capabilities.
xAI will gain exclusive access to X's user data for training its AI models, including the chatbot Grok, prompting privacy and compliance scrutiny, especially in Europe.
The management structure of the merged companies remains unclear, with X CEO Linda Yaccarino expressing optimism but no details from Musk on leadership roles.
Analysts are optimistic about the growth potential, with some predicting the valuation will seem modest in the future, as global spending on generative AI surges.