Grok AI Alert: Elon Musk Sells Social Media Platform X To His AI Giant Grok; Everything About The Deal

Social media platform, X which was formerly known as Twitter, is sold yet again. This time Elon Musk announced that his AI giant Grok has acquired X in an all-stock transaction. This leads to a combined valuation of $80 billion for Grok AI and $33 billion for X.

Through his X handler, Musk said, "xAI has acquired X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt)."

The world's richest man, Musk, highlighted that xAI and X's futures are intertwined. He said, "Today, we officially take the step to combine the data, models, computing, distribution and talent. This combination will unlock immense potential by blending xAI's advanced AI capability and expertise with X's massive reach."

"The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn't just reflect the world but actively accelerates human progress,"

Further, Musk said, "I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning."

What is Grok and how does it work?

Launched by xAI in 2023, Grok is a generative artificial intelligence chatbot. The chatbot is advertised as having a "sense of humour" and direct access to sister platform X, formerly known as Twitter, as per Wikipedia.

According to X's help desk, Grok is an AI assistant who helps complete tasks, like answering questions, solving problems, and brainstorming. Grok is available to X users and is powered by xAI's state-of-the-art large language model (LLM). Inspired by the Hitchhiker's Guide to the Galaxy and JARVIS from Iron Man, Grok is designed to answer almost any question with a touch of wit and humour, while also providing helpful and insightful responses.

It added Grok has a rebellious streak and an outside perspective on humanity, making it a unique and entertaining companion. Grok utilizes next-token prediction model weights (models that predict the most likely word or symbol to follow a given text sequence) to know how to perform certain tasks.

That being said, Grok is available on the X platform as an AI assistant.

In the early hours of March 29, Musk said, that since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale.

In the case of X, Musk added that the social media platform is the digital town square where more than 600 million active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth.