Arm CEO Rene Haas addressed the tech industry’s significant investments in artificial intelligence during a segment on The Claman Countdown. In recent news, Elon Musk’s AI company xAI has acquired his social media platform X, in a significant transaction that values X at $33 billion.
The announcement was made by Musk, who is also CEO of Tesla and SpaceX, on the social media platform. He revealed that the deal was an all-stock transaction aimed at merging the advanced AI capabilities of xAI with the extensive reach of X. The combined valuation places xAI at $80 billion and X at $33 billion, taking into account X’s $12 billion debt.
Musk, who previously purchased X (formerly known as Twitter) for $44 billion in 2022, expressed his vision of reducing censorship on the platform, which he believed was underutilized. He stated that the merged entity’s mission would be to provide more intelligent and meaningful experiences to billions of users while adhering to the goal of seeking truth and advancing knowledge.
The platform, according to Musk, acts as a digital town square for over 600 million active users seeking real-time ground truth. He emphasized the transformation of X into a highly efficient company, poised for scalable future growth.
xAI’s primary product, Grok, is an AI chatbot integrated into X for premium subscribers, designed to compete with other chatbots like OpenAI’s ChatGPT, as well as Google’s Gemini and Anthropic’s Claude.
In the past, Musk attempted to prevent OpenAI, which he co-founded in 2015 with Sam Altman and others, from becoming a for-profit entity. He left OpenAI in early 2018 after failing to secure control as its majority shareholder and CEO, with subsequent efforts to merge it with Tesla proving unsuccessful.
Founded by Musk in March 2023, xAI has recently increased its valuation to $75 billion following a $10 billion funding round. The company’s new chatbot, Grok-3, was launched last month. xAI is also enhancing its data center capabilities, notably its “Colossus” supercomputer cluster in Memphis, Tennessee, which is claimed to be the largest in the world.
Musk’s aim is to harness the X platform to distribute xAI’s products effectively, while also using it as a source of real-time user-generated content.