Elon Musk Consolidates Power As Xai Swallows X

The deal could also help xAIs ability to train its chatbot known as Grok.

xAI and Xs futures are intertwined, Musk, who also heads car maker Tesla and rocket company SpaceX, wrote in a post on X. Today, we officially take the step to combine the data, models, compute, distribution and talent.

He said the combination values xAI at 80-billion and X at 33-billion, or 45-billion less 12-billion in debt.

Representatives for X and xAI did not immediately respond to requests for comment. Much of the deals specifics remain unclear, such as how Xs leaders would be integrated in the new firm or whether there would be regulatory scrutiny. Musk, the worlds wealthiest man, is also a close ally of US President Donald Trump and heads the department of government efficiency.

In February, Musk, 53, made a 97.4-billion bid with a consortium for OpenAI, which was rejected and he has sued to prevent the ChatGPT maker from converting from a non-profit to a for-profit business. A judge this month denied Musks request for a preliminary injunction that would prevent the changeover.