Elon Musk has officially merged his social media platform X (formerly known as Twitter) with his artificial intelligence company, xAI, in an all-stock transaction. The deal, announced by Musk himself on X, values xAI at $80 billion and X at $33 billion, taking into account X's $12 billion debt subtracted from its previous $45 billion valuation.

This strategic move centralizes control over AI and data within Musk's companies, allowing xAI to leverage X's real-time data to refine its AI models, while X will benefit from advanced AI features enhancing user experience. Musk emphasized that combining xAI's AI capabilities with X's extensive reach will unlock immense potential, delivering smarter experiences to billions of users.

Founded two years ago, xAI aims to understand the universe's true nature and has been rapidly developing large language models and AI tools, positioning itself as a competitor to OpenAI. xAI's projects include building a supercomputer named Colossus in Memphis, Tennessee, powered by natural gas-burning turbines, raising environmental and public health concerns.

Musk has stated the merger will combine data, computing power, distribution, and talent to advance AI-driven experiences while staying committed to truth and knowledge advancement. He also noted that this combination will allow them to build a platform that actively accelerates human progress.

In recent years, the artificial intelligence industry has become highly competitive, with companies racing to develop advanced technologies. Musk's move creates a closed ecosystem where he owns both the AI company and the data source, positioning him to compete with major AI firms like OpenAI. Earlier in the year, Musk offered to buy OpenAI for $97.4 billion, but the bid was rejected.

Musk originally co-founded OpenAI in 2015 but left in 2018 due to disagreements. Following his departure, OpenAI transitioned to a hybrid model and partnered with Microsoft, securing significant funding. Musk has since criticized OpenAI for straying from its founding mission and even sued the firm to prevent its conversion to a for-profit business, though his request for a preliminary injunction was denied.

With xAI, Musk is intensifying his efforts to compete in the AI race by building the Colossus supercomputer and releasing the Grok-3 chatbot. Grok-3 currently uses X to distribute AI products and collect data for future AI models.

The acquisition of X by xAI marks a significant step in the artificial intelligence industry, with Musk centralizing control over AI and data to compete with major firms. While the specifics on leadership integration and regulatory oversight remain unclear, the merger's strategic alignment is expected to drive advancements in AI-driven experiences for billions of users.