Musk highlighted that merging XAI and X will leverage their combined data, models, and resources, unlocking substantial potential for innovation.

In a significant move, Elon Musk's artificial intelligence startup, XAI, has acquired his social media platform X, formerly known as Twitter, for $33 billion in an all-stock deal.

This integration aims to enhance user experiences and further the mission of advancing knowledge and truth by combining the strengths of both companies.

Despite ongoing controversies surrounding hate speech and misinformation on the platform, advertising revenues on X are projected to grow by 17.5% in the U.S. for the first time since 2021.

The sale raises potential conflicts of interest due to Musk's ownership of both X and XAI, which could disadvantage investors in either entity.

Musk is actively targeting advertisers who previously distanced themselves from X, indicating a shift in the advertising landscape on the platform.

However, critics are raising concerns about the reliability of the reported 'adjusted' EBITDA figures, suggesting they may rely on questionable financial adjustments.

Musk's political ties, particularly with Donald Trump, are influencing advertising dynamics, as some companies consider returning to the platform amid fears of government backlash.

Additionally, a U.S. judge recently dismissed Musk's attempt to end a lawsuit alleging he defrauded former Twitter shareholders by delaying the disclosure of his investment in X.

Tesla's market value has dropped significantly, leading to investor dissatisfaction with Musk's political stance and its impact on the company's performance.

Critics have mocked the valuation of the merger, pointing out the unusual nature of Musk's companies valuing each other highly despite ongoing financial struggles.

As this story develops, further updates are expected regarding the implications of this acquisition and its impact on both X and XAI.