Here are the reasons for the Master's Deal to integrate "X" and "Xai". This is the results of that
Elon Musk acquired the social network “X”, formerly known as “Twitter”, for the second time in two years. On March 28, Musk used a person in the world, the emerging artificial intelligence business Xai, which he founded to obtain the social media platform he was running in an “X” X -Billion Dollar exchange, does not include debt. The value of the new joint entity, called ‘Xai Holdings’, will be more than $ 100 billion, which does not include debt, according to ‘Bloomberg’. Although the agreement was a surprise, it does not necessarily mean that it has been shocking, as the two companies have always worked closely since the establishment of “Xai” in 2023, and the collaboration areas for the exploitation of data and distribution of “Grok” products, the conversational robot developed by “Xai”. The two companies also contribute to a number of the same investors, and some employees also share the workplace in Palo Alto, California. Musk pointed out that the Xai agreement assessed 80 billion, which represented an increase in its evaluation by about $ 50 billion in November, when it did the previous round to raise money from investors. As for the ‘X’ evaluation in the transaction at $ 33 billion, it is almost the same as its evaluation in a recently closed financing round, and the price paid by Musk to convert ‘X’ to a private royal company in 2022, which also includes the $ 12 billion debt. An unexpected victory for the “X” investors who, through MIS, decided to integrate the two businesses a victory for the “X” investors, where they endured two years of fading since its acquisition on the platform, in light of the reluctance of advertisers and users of the social network. Companies have challenges in increasing advertising activities or to achieve significant income from subscriptions, and during most of this period, the Fidelity Investment Company has reduced the value of their share in X by 60% and 70%. Integration with Xai means that X -shareholders currently have shares in an emerging artificial intelligence business with large growth potential. Musk wrote in the post of advertisements the agreement on “X” that “the future (xaa) and (x) became intertwined. Today we officially take a step towards the combination of data, models, computer, distribution and powers. However, the agreement raises a number of questions, of which the most prominent was the agreement necessary? In the following rules, we address a number of the most important factors on the new agreement. What is the reason for the agreement? Mask’s publications and other shareholders in X or “Xai” have priced this week and have indicated ways that the two businesses can help each other. The focus is mainly on the exclusive data collection that you will get Xai via “X” and billions of posts that users share. The integration will also give “Xai” complete control over the data group, which means that the ability of companies to refuse to give any other competitor in the field of artificial intelligence licenses to use this data. Meanwhile, X Xai can help distribute the Grock conversation robot and other products to millions of consumers. However, this perception involves a problem that all of these alleged benefits have already been fulfilled, as Xai has used social networking data for more than a year to train ‘grees’, while a mask promotes a conversational robot between users on ‘X’, and sells advanced versions to the platform users through the distinctive subscription. Given the role of Musk in the management of the two companies, it is assumed that there is no concern to lose these benefits, or the beginning of sudden cooperation between X and one of the “Xai” competitors. What is the actual evaluation of X and Xai? Musk says the Agreement X raises $ 33 billion does not close $ 12 billion in debt and Xai at $ 80 billion. In this agreement, Musk is used one of its own businesses to acquire another, both represented by the same bank, “Morgan Stanley”. This unique agreement means that a theoretical mask is able to determine any evaluation it for “X” and “Xai”, unless any of the investors do objects. XA’s acquisition on X for almost the same amount that Musk paid in October 2020 is no coincidence because it simply means that X investors transferred their shares from one business to another. It is also interesting that the latest evaluation of “Xai” before the agreement amounted to about $ 50 billion, but it has now risen to $ 80 billion, although there is no new financing to the agreement, according to a person familiar with the agreement. Therefore, the assessment of the company seems to increase the evaluation of the business as part of the acquisition. ‘X’ spokesman refused to comment on the details of the agreement when it was announced. Who will drive Xai Holdings? The executive director of “X” Linda Yakino was one of the largest building of the agreement last week, and she wrote in a publication that “the future could not be brighter than that.” This is not entirely the effect of integration on the future in the management of the business. Musk has not yet announced no administrative structure for “Xai Holdings”, and it was not known to run the new joint entity, except that the acceptance of the position itself is the most likely choice. Yakarino can remain in her position and the “X” administration continues as a business unit in the new company, but the merger agreements are mostly difficult, and they can mention important changes in positions. Therefore, we must look at how a mask will improve the integration of X and Xai activities to understand the course of things in the future. How will the agreement change the social media product offered by X? It was not immediately clear how much the acquisition of the “X” was attributed if it did not have an effect at all. This is due to other reasons – to the extent of the great overlap between the two companies. For example, CROKE is available on the X platform, and users can pay an extra amount to obtain the different benefits associated with the robot for artificial intelligence. Crys is likely to merge more into the “X” platform over time, including tools such as modified images or audio assistant. However, this is expected to look at the approach that Musk used in both businesses. Will other social networks be obtained as well? Artificial intelligence enterprises seek to obtain any exclusive dating groups amid their education of artificial intelligence systems, and are looking for ways to distinguish conversational robots they develop from competitors. For example, Reddit has granted a license to “Google” owned by “Alphabet” to use the user content group, and earns millions of dollars from the award of licenses to artificial intelligence businesses annually. Other artificial intelligence businesses, such as “Openai”, “Anthropic” and “Perplexity AI” – Study other social networks to ensure that unique data groups are available, according to the Bloomberg Intelligence Singh analyst. ‘Berkelsteri’ made an offer to integrate with the US ‘Tech Talk’ unit as a solution to the continued activity of the Bitdance Company in the United States. “We expect the smaller parties in social media platforms to make efforts to form alliances with major linguistic service providers, given the high evaluation of (XAI) to 80 billion, exceeding the total market value of (SNAP), (Bitras) and (Reddit) businesses.”