Elon Musk announced the merger of X and xAI in an all-stock deal, stating that the merger combines the strengths of both companies. Despite the lower valuation compared to his initial Twitter purchase, Musk aims to create a significant technological platform.

With over 600 million active users, X faces competition from Meta’s Threads and Bluesky. Musk’s strategy includes leveraging AI capabilities, with the aim of securing new investment and advancing human progress through a unified platform.