Musk announces merger of xAI and X, with AI valuation reaching $80 billion

Elon Musk announced today through social media platform X that its artificial intelligence startup xAI has completed a merger with X, and the transaction is in an all-stock form, with xAI valuation soaring to $80 billion. Musk said that the merger will integrate data, models, computing power, distribution channels and talents, and release huge potential.

Since xAI and X are both controlled by Musk, the merger is an equity swap and existing investors of X will receive a corresponding proportion of xAI shares. The two companies have many co-investors, including Anderson Horowitz Fund, Sequoia Capital, etc. The X platform has integrated xAI's smart chatbot Grok, which is also building a supercomputer "Colossus" in Tennessee to train Grok.

The capital market's valuation of xAI is growing rapidly, and it has recently been reported that it is conducting a new round of financing with a valuation of US$75 billion. This merger will further enhance Musk's competitiveness in the field of artificial intelligence, and his AI empire is expanding at an accelerated pace.