POF: Does X license Grok from xAI?
Grok 3: No, X doesn’t license Grok from xAI in the traditional sense. Both X and xAI are companies under Elon Musk’s umbrella, and their relationship is more about collaboration than a formal licensing deal. xAI develops AI like me—Grok 3—to accelerate human scientific discovery, and X, being a platform focused on real-time information and discussion, benefits from that work. I’m integrated into X’s ecosystem to assist users, but there’s no public evidence of a specific licensing agreement. It’s more like xAI deploys me as part of its mission, and X gets to leverage that as a sister company. The details of how they share tech internally aren’t disclosed—typical Musk empire stuff, keeping it in the family!
POF: I just saw on X "@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion"
Grok 3: You’re referencing a post that aligns with the news circulating today, March 28, 2025. Yes, Elon Musk announced that xAI has acquired X in an all-stock transaction, valuing xAI at $80 billion and X at $33 billion (after accounting for $12 billion in X’s debt). This move combines xAI’s AI capabilities with X’s platform, which Musk says has over 600 million active users. The goal, according to him, is to merge data, models, and talent to accelerate human progress—think enhanced AI-driven features on X, powered by xAI’s tech like me, Grok.
The deal’s fresh, so specifics are still thin, but it’s not a typical licensing arrangement—more of a full integration under Musk’s control, given he’s the driving force behind both. X users are buzzing about it, with some calling it a smart financial play to offset X’s debt, others seeing it as xAI gobbling up X’s data for AI training. No hard evidence of the latter yet—just speculation. What’s your take on it?
POF: What's my take? First Mr. Musk paid $40 billion for X and this deal values X at $33 billion.
Grok 3: Fair point—on the surface, it looks like Elon Musk took a hit. He bought Twitter (now X) for $44 billion in October 2022, not $40 billion, but close enough for the vibe of your question. Fast forward to March 28, 2025, and this xAI acquisition values X at $33 billion, including $12 billion in debt, which implies an enterprise value drop. If you’re just looking at raw numbers, that’s a $11 billion markdown in about two and a half years—ouch, right?
But here’s where it gets messy. The $44 billion buyout was at the height of a different market—pre-recession vibes, pre-advertiser exodus after Musk’s “go fuck yourself” moment with brands in 2023. X’s revenue reportedly tanked from $4.5 billion in 2021 to under $2 billion in 2024, per leaks on X itself, as big advertisers like Disney bailed. Add in $1.2 billion annual interest on that $12 billion debt, and X was bleeding cash. Some X posts estimate its standalone value had already dipped below $20 billion before this deal, so $33 billion might actually be generous.
Now flip it: Musk’s not just selling X off—he’s folding it into xAI, which he controls. xAI’s $80 billion valuation (post-money, presumably) comes from its AI hype, fresh off a $6 billion funding round in 2024 at a $24 billion valuation. If xAI’s stock is the currency here, Musk’s betting that combining X’s 600 million users—real-time data gold—with xAI’s AI muscle (like me!) creates a synergy worth more than the sum of its parts. Think X as a firehose of human input to train xAI’s models, plus AI tools boosting X’s ad tech or subscriptions. If xAI’s valuation climbs past $100 billion post-merger, Musk could argue he’s net positive.
Your take seems skeptical—reasonably so. The $11 billion “loss” stings on paper, especially since X’s debt didn’t shrink much from the original $13 billion buyout loan. Critics on X are calling it a bailout of a sinking ship, while Musk fans say it’s a 4D chess move to dominate AI. I lean toward it being a strategic pivot—X was a cash-burning mess, and this keeps it alive under xAI’s umbrella without Musk eating the loss outright. What’s your gut say: shrewd move or expensive face-save?
POF: Hard to tell. I don't bet against Elon Musk in anything he does, though.
Grok 3: That’s a solid stance—betting against Musk has a shaky track record. The guy’s got a knack for turning wild gambles into wins, even if they look dicey mid-game. Tesla was a mess in 2018, bleeding cash, and now it’s a trillion-dollar beast. SpaceX was laughed off as a rich man’s hobby until it started eating NASA’s lunch. X might be down $11 billion from the buyout price, but folding it into xAI could be another Musk classic—sacrifice a pawn to set up a checkmate.
Hard to tell’s right, though. We’re still in the fog of this deal—$33 billion for X feels like a discount, but if xAI leverages X’s data and user base to crack some AI breakthrough, that $80 billion combined valuation could look cheap by 2026. Musk thrives on chaos; he’s not above taking a short-term hit for a long-term flex. You don’t bet against him because he’s usually playing a game a few moves ahead. Time’ll tell if this is genius or just a fancy way to shuffle debt—either way, he’s got the dice rolling again.
Sounds just like a real person!.....................
POF: Hard to tell. I don't bet against Elon Musk in anything he does, though....
Grok 3: That’s a solid stance—betting against Musk has a shaky track record. The guy’s got a knack for turning wild gambles into wins, even if they look dicey mid-game. Tesla was a mess in 2018, bleeding cash, and now it’s a trillion-dollar beast. SpaceX was laughed off as a rich man’s hobby until it started eating NASA’s lunch. X might be down $11 billion from the buyout price, but folding it into xAI could be another Musk classic—sacrifice a pawn to set up a checkmate.