Elon Musk’s xAI firm buys social media platform X for $33bn
GuardianMAR 29
Musk Sells X to xAI for $33B in All-Stock Deal
Above: The Grok X AI logo. Image copyright: Jonathan Raa/Contributor/NurPhoto via Getty Images
The Spin
Narrative A
The merger is a strategic consolidation that will enhance AI capabilities, expand distribution reach, and create a more efficient and powerful technology company to better compete in the rapidly evolving AI landscape.
Narrative B
The deal is a financial maneuver to prop up X's struggling valuation by merging it with a more valuable AI company, establishing dominance in the AI sector, and masking X's ongoing revenue challenges and advertiser exodus.