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Elon Musk's latest move might sound a bit like a math problem.
In a message posted Friday afternoon on his social media platform X, Tesla’s (TSLA) CEO announced that his artificial-intelligence company, xAI acquired X as part of a 100% stock transaction. The deal values both companies at $80 and $33 billion, respectively. He said the latter number reflects a $45 and $12 billion debt for X.
These figures are in line a recent Bloomberg article that reported about $1 billion raised by X. Musk’s 2022 acquisition, which he renamed X to Twitter, valued the company $44 billion.
Musk wrote on Friday that “xAI’s and X’s futures are connected.” “Today we take the official step to combine data, models and compute, distribution, and talent. This combination will unlock enormous potential by combining xAI’s advanced artificial intelligence capability and expertise with X’s massive reach.
Musk’s stated valuation of X, for which he claimed to have more than 600,000,000 active users, is compared with Visible Alpha estimates of approximately $20 billion for Reddit(RDDT) and over $15 billion for Snap(SNAP). Meta Platforms (META), a tech giant, has an estimated market capital of over $1.5 trillion.
Musk's other companies include SpaceX, Neuralink and The Boring Company.
