Key Takeaways
1. Elon Musk’s AI firm xAI acquired X for $33 billion, valuing the company at $45 billion after accounting for $12 billion in debt.
2. X has over 600 million active users and has seen an increase in stock price since its launch in 2006.
3. xAI, founded in 2023, aims to “understand the universe” and its Grok AI is now among the top three AI models globally.
4. xAI received $6 billion in Series C funding, allowing for an upgrade of their supercomputer, Colossus, to 200,000 Nvidia Hopper GPUs.
5. The acquisition may change how Grok accesses public data on X, raising concerns for users about the potential use of their data by AI.
Elon Musk’s AI firm, xAI, has bought X for $33 billion in a deal entirely made with stock. This amount reflects a valuation of $45 billion, taking into account $12 billion in debt. In 2022, Musk acquired Twitter for $44 billion in cash, later rebranding it to X.
User Engagement and Growth
Musk pointed out that X boasts more than 600 million active users and remains a favored site since its debut in 2006. The stock price of the company has also seen an increase in recent years.
Milestones for xAI
Founded in 2023 with private funding, xAI aims to “understand the universe.” Its Grok AI has surged up the Chatbot Arena Leaderboard, now ranking among the top three AI models globally. Grok was developed on a supercomputer named Colossus, which features 100,000 Nvidia Hopper GPUs.
In December 2024, the company secured $6 billion in Series C funding from a variety of investors such as Blackrock, Kingdom Holdings, Morgan Stanley, and Sequoia Capital. This influx of capital will enable xAI to upgrade Colossus to a 200,000 Nvidia Hopper GPU supercomputer.
Implications for Data Access
Currently, Grok has the ability to access public posts on X, and the recent acquisition may alter the data access for xAI’s AI, as Musk said, “Today, we officially take the step to combine the data, models, compute, distribution and talent.” Users worried about the permanent use of their X data by AI might want to consider switching to alternative social media networks and deleting their X accounts.
For those interested in exploring new applications with the open-source Grok AI model, a powerful Nvidia GPU is available for purchase on Amazon.
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