Elon Musk’s xAI has acquired X for $33 billion in an all-stock deal, raising speculation about job cuts as AI technology, specifically Grok, takes over human roles. The merger combines significant data resources from X with advanced AI capabilities from xAI. Musk faces ongoing legal challenges regarding layoffs and financial disclosures remain unclear, creating uncertainty about X’s future.
In a whirlwind of social media transformation, Elon Musk’s xAI has acquired X, formerly Twitter, for a staggering $33 billion. This all-stock transaction opens up a realm of possibilities for AI integration as xAI, with its powerful Grok model, gains access to X’s vast repository of tweets spanning over two decades. The merger taps into the immense potential of blending cutting-edge AI with an established social media platform.
Musk, who previously slashed 75% of X’s workforce after his 2022 purchase, now faces speculation on further job cuts. With xAI rapidly evolving since its launch, the prospect of Grok taking over human roles becomes increasingly likely. The integration of these two companies signifies potential layoffs, historically tied to mergers, amid concerns over the consequences of employing AI for tasks traditionally managed by people.
The secretive nature of private entities like xAI and X means we might not see financial disclosures anytime soon. Musk’s recent statements revealed the combined valuation at $80 billion for xAI, while X stands at $33 billion, reflecting a significant loss since Musk’s initial $44 billion purchase. This indicates an $11 billion loss, possibly providing Musk a strategic advantage for tax purposes.
In the background looms a complex lawsuit against X concerning severance pay and breach of contract claims stemming from its layoffs. In December 2024, it was determined that X must confront several accusations while others were dismissed. Musk’s knack for navigating legal challenges invites curiosity about the ramifications of this acquisition as he continues to shape the landscape of social media and technology under President Trump’s administration.
The acquisition of X by Musk’s xAI signals a pivotal moment in social media’s evolution, intertwining the platform’s vast data resources with cutting-edge AI technology. While the potential for job cuts grows with the introduction of Grok, the financial implications of the sale remain to be fully understood. Amid ongoing legal challenges surrounding layoffs and severance pay, the future of X is fraught with uncertainty, leaving observers eager to witness how Musk will maneuver through this new chapter.
Original Source: www.theweek.in
