Musk’s XAI Deal Offers an Unexpected Win for X Investors
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg News Technology Reporter Kurt Wagner discusses Elon Musk acquiring the social network formerly known as Twitter for the second time in three years.Musk, the world’s richest person, on March 28 used his artificial intelligence startup, xAI, to purchase his social media platform in an all-stock deal that values X at $33 billion, not including debt. The new joint entity, which will be called XAI Holdings, has a value of more than $100 billion, again excluding debt, Bloomberg News reported.The deal was a surprise, but not necessarily shocking: The two businesses have worked together closely since xAI’s founding in 2023, including on data licensing and product distribution for xAI’s chatbot, Grok. They also share many of the same investors, and in some cases, employees even share office space in Palo Alto, California.The transaction valued xAI at $80 billion, Musk said — a jump from a valuation of about $50 billion in November, the last time the company raised money from investors. The $33 billion equity value of X in the deal is about the same as its valuation in a recently closed funding round, and also close to Musk’s take-private price in 2022, which also counted $12 billion in debt.Chris Brigati, Chief Investment Officer at SWBC, talks about avoiding panic-trading in volatile markets. Jacqui Canney, Chief People & AI Enablement Officer at ServiceNow, explains why today’s leaders need to be building an AI-first workforce. And we Drive to the Close with Vinny Catalano, Chief Markets Strategist at Stuyvesant Capital Management.Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan. See omnystudio.com/listener for privacy information.
USA