Elon Musk says he has sold X to Ai Start-Up Xai

Elon Musk said on Friday that he had sold X, the Social Media Society, to XAI, the start of his artificial intelligence, in an unusual arrangement that shows economic maneuvers within the richest man in the world.

The agreement of all XAI worth of value to $ 80 billion and X to $ 33 billion, Mr Musk said at the price of X. X was reduced by the $ 44 billion that Mr Musk paid for the social media company at 2022, The latest evaluation of XAI, in December rally round, was about $ 40 billion.

Both companies are maintained private and already shared significant resources, such as engineers. A Chatbot called Grok, Made by Xai, is trained in data published by X users and available in X. Last month bankers told X that some of the social media’s revenue came from XAI.

Mr Musk wrote in his position that “Xai and X contracts are interconnected”.

“Today,” he said, “we are officially taking the step to combine data, models, calculation, distribution and talent.” He added: “The combined company will deliver smarter, more important experiences to billions of people, while remaining in our basic mission to seek the truth and promote knowledge.”

The agreement shows how Mr Musk can play with various parts of his business empire. In this case, folded a company that has lost value, X, in one that has gained value, XAI. Mr Musk made a similar maneuver in 2016, when he used the stock of his electric car company, Tesla, to buy Solarcity, a clean energy company where he was the largest shareholder and his cousin Lyndon Rive was chief executive.

While Tesla is a company negotiating the public who has to disclose its finances and other shareholders, most of the companies in Mr Musk are private and more opaque. These include SpaceX rocket manufacturer. The boring company, a tunnel start. and Neuralink, a brain interconnection company. Mr Musk often moves the resources and employees between his companies, defying the traditional business rules and the operation of his various companies as a large Musk business.

Linda Yaccarino, CEO of X, wrote in X of the deal: “The future could not be brighter.” X refused to comment.

Other executives who control many companies have benefited from this post, creating cross -section, said experts. For years, Eddie Lampert, a billionaire at the Hedge Fund, has used the valuable property that belonged to the support of Sears, his retail business.

But even with this previous one, Mr Musk’s edition stands out, said Andrew Verstein, a professor at the UCLA School of Law.

“Elon’s version seems to say: I have a company – maybe it doesn’t go bankrupt. It’s just not my world,” said Verstein. “I’ll buy it in a way that makes it look like successfully using one of my other companies.”

X and xai are found in different orbits. X is much more widely known, and Mr Musk used it as a RAM to promote his political views, promoting the platform for President Trump and supporting the support of his government effort, known as government efficiency.

But X’s financial perspective has been reduced since Mr Musk bought the company. Most of the website revenue comes from advertising, but the trademarks were cautious about spending on X, as Mr Musk has complained and rejecting the company’s moderation rules in favor of an atmosphere with nothing more.

The valuation of H was $ 12 billion in December, according to Fidelity, one of the investors involved in the acquisition of Mr Musk.

While some advertisers recently returned to X, hoping to bend the favor, as Mr Musk became a close adviser to Mr Trump, the company has not yet regained financial stability. In January, Mr Musk told employees that the revenue was “impressive” and that the company “just breaks even”.

This month, X continued to struggle to hit the revenue targets, according to an internal email seen by the New York Times. Since March 3, the X had served ads of $ 91 million this year, according to the message, well below the target of the first quarter of $ 153 million.

“Time to sprint on the finish line is now,” the email said, urging sellers to get the pace.

On the contrary, XAI has increased quickly. AI’s launch increased $ 6 billion from investors in December, rating it to $ 35 billion to $ 40 billion from $ 24 billion in May.

The company has also put the roots in Memphis, where Mr Musk has built what he says will be the largest supercomputer in the world.

Mr Musk started Xai in 2023 to compete with Openai, the AI ​​laboratory he founded and this is doing the chatgpt. Mr Musk left Openai in 2018 and has since sued the company and offered to acquire it, arguing that he only can create AI responsibly that would not destroy humanity.

(Times sued Openai and her partner, Microsoft, in December 2023 for the infringement of copyright of the AI ​​-related news content.

Last month, X bankers sold much of the company’s debt, a task they had considered almost impossible before Mr Trump’s inauguration. Investors who bought debt said X’s revenue had improved, in part because XAI pays X to grant permission to use his data, essentially channeling capital from one of Mr Musk’s companies to another.

Given the symbiotic relationship between X and XAI, investors in companies can welcome the transaction, said Eric Talley, a professor at Columbia Law School.

“The cook was probably able to play quickly and relaxed, stealing the ingredients from one and gives it to the other and vice versa,” Mr Talley said. “You didn’t know if you were at the end or at the end of this.”

The deal, in some ways, solves this problem. “Now that everything is together in the same container. Everything is just mixing together,” Mr Talley said.

However, investors’ satisfaction will depend on how many shares of the new company X investors are in return for their shares.

“If it turns out that the terms of exchange are such that they are really stacked the deck in favor of one another, you probably feel you got the axis,” Mr Talley said.

The news of Friday’s agreement was celebrated in X.

“This is an extremely exciting step for all of us,” Ms Yaccarino wrote in an email to employees we saw from the Times.

Ryan mac They contributed reports.