Acquisition of X gives xAI a data powerhouse

The news: xAI acquired X (formerly Twitter), giving xAI access to an invaluable collection of user data for product development and improvement.

xAI CEO Elon Musk said that the all-stock purchase valued X at $45 billion—minus $12 billion in debt—and that the companies will combine their data, models, compute, distribution, and talent.

Zooming out: The business connections between X and xAI go deeper than shared ownership—all xAI employees are also X employees, per The Verge, and X serves as the main distribution channel for xAI’s Grok chatbot.