Tech

Musk’s xAI merges with X, valued at $33 billion

Elon Musk’s xAI merges with X, valuing the social media site at $33 billion and AI company at $80 billion.

Published

3 weeks ago

March 30, 2025

Ahron Young

Elon Musk’s xAI merges with X, valuing the social media site at $33 billion and AI company at $80 billion.

In Short

Elon Musk’s startup xAI has merged with his social media platform X in an $80 billion deal to enhance their capabilities.

The merger aims to combine xAI’s technology with X’s reach, with plans for a supercomputer in Memphis and existing AI products like the Grok chatbot.

Elon Musk announced that his startup xAI has merged with X, the social media platform he controls, in an all-stock deal that values xAI at $80 billion and X at $33 billion.

Musk stated that the merger aims to combine resources from both companies to enhance their capabilities. He believes this will unlock significant potential by integrating xAI’s advanced technology with X’s broad reach.

The transaction is likely a stock swap since both companies are privately held and controlled by Musk. Investors in X will receive shares in xAI. Both companies share several mutual investors, including Andreessen Horowitz, Sequoia Capital, Fidelity Management, Vy Capital, and Saudi Arabia’s Kingdom Holding Co.

High competition

Musk’s foray into AI began with the establishment of xAI about two years ago, aimed at understanding the universe. xAI has been working to compete with prominent AI companies like OpenAI, a venture Musk co-founded but later distanced himself from due to disagreements.

xAI has developed AI products and aims to enhance its offerings with the merger. The companies are already connected, with xAI’s Grok chatbot available on the X app. xAI also plans to build a supercomputer in Memphis to enhance its AI capabilities, despite concerns from local advocacy groups over the project’s environmental impact.

Musk is also engaged in political activities, having contributed significantly to Donald Trump’s campaign while overseeing a department aimed at reducing government expenditure. This merger follows a previous acquisition strategy he employed with Tesla when it acquired SolarCity in 2016.

Tech

Nvidia to build AI supercomputers in the U.S. for first time

Nvidia invests $500 billion in U.S. AI supercomputers, shifting production to Texas to strengthen supply chains and boost domestic growth amid rising tariffs and national tech pressures.

Published

4 days ago

April 18, 2025

Veronica Dudo

Nvidia invests $500 billion in U.S. AI supercomputers, shifting production to Texas to strengthen supply chains and boost domestic growth amid rising tariffs and national tech pressures.

Nvidia to build AI supercomputers in the U.S. for the first time — a $500 billion move that could redefine the global tech industry.

With new tariffs on imports from China and Taiwan, the chip giant is shifting production to Texas, partnering with Foxconn and Wistron.

Nvidia says the decision will strengthen its supply chain and boost domestic economic growth.

The announcement comes amid growing pressure to secure national tech infrastructure and reduce reliance on Asia. How will this impact jobs, prices, and America’s AI ambitions?

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Tech

‘Stuck in the past’: Has Apple lost its edge?

Apple, once an innovator, faces criticism for stale updates and designs, prompting comparisons to 1980s IBM and calls for Tim Cook’s departure.

Published

6 days ago

April 16, 2025

Ahron Young

Apple, once an innovator, faces criticism for stale updates and designs, prompting comparisons to 1980s IBM and calls for Tim Cook’s departure.

Apple, once a symbol of innovation, is now under fire for uninspiring product updates.

The headline “Has Apple lost its edge? Critics say it’s stuck in the past” captures growing frustration over recycled designs and underwhelming features.

From the original iPhone to the lacklustre Apple Intelligence, critics now compare the company to IBM in the 1980s. Is it time for Tim Cook to step aside?

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#Apple #TimCook #TechNews #iPhone #AppleIntelligence #Innovation #BradGastwirth #TechDebate

Tech

OpenAI explores social network to rival Elon Musk

OpenAI is considering a social network to rival Musk’s X, spurred by the success of its new image-generation feature.

Published

7 days ago

April 16, 2025

Ahron Young

OpenAI is considering a social network to rival Musk’s X, spurred by the success of its new image-generation feature.

In Short

OpenAI is considering creating a social network to compete with Elon Musk’s X and Meta’s Instagram, following high demand for its new image-generation tool.

The company has raised $40 billion in funding and is facing increased server demands, prompting efforts to temporarily limit the tool’s usage.

OpenAI is contemplating the development of a social network to rival Elon Musk’s X and Meta’s Instagram, according to an informed source.

This initiative is reportedly in the early stages and has emerged following the success of OpenAI’s latest image-generation tool, which has stressed the company’s servers.

The announcement was first reported by The Verge, while OpenAI has chosen not to comment on the matter.

Image-generation

In March, OpenAI launched its new image-generation feature designed to create various visual content, including diagrams, infographics, and logos. This tool also enables users to produce artistic renditions from their uploaded images.

Recently, images generated by this feature have gained significant traction on social media, with OpenAI’s CEO Sam Altman recently using one for his profile photo on X. Altman noted the overwhelming popularity has led to increased server demands.

He mentioned that the company is currently looking to limit the feature’s usage temporarily while they enhance its efficiency.

The generative AI sector is highly competitive, particularly with the involvement of Musk’s xAI, which recently acquired X. The relationship between Altman and Musk has become contentious, particularly surrounding OpenAI’s move to become a for-profit entity.