Tech billionaire Elon Musk announced that he is planning to build ‘BabyGrok’, a dedicated AI platform for kid-friendly content amid the anti-pornography (NSFW) backlash. But is AI-based learning safe for kids?

Tech billionaire Elon Musk announced on March 28 that he was selling his social media company X (formerly Twitter) to xAI, his own artificial intelligence company.

xAI will pay $45 billion for X, slightly more than Musk paid for the company in 2022, but the new deal includes $12 billion in debt.

Musk wrote on his X account that the deal gives X a valuation of $33 billion.

“The future of xAI and X is intertwined,” Musk said in a post on X.

“Today, we are officially taking the step to combine data, models, compute, distribution, and talent. This combination will unlock enormous potential by combining xAI’s cutting-edge AI capabilities and expertise with X’s massive reach,” the billionaire and world’s richest person added.

Musk did not immediately announce any changes to X, although xAI’s Grok chatbot has been integrated into the social media platform. Musk said the combined platform would “deliver smarter, more meaningful experiences.” He said the combined company was worth $80 billion.

Musk has made a series of changes to the platform formerly known as Twitter since he acquired it in 2022, prompting some major advertisers to flee.

He fired 80% of the company’s staff, reversed the platform’s verification system, and reinstated suspended white supremacist accounts within months of the acquisition.

Billionaire Elon Musk makes another notable move with social network X

While X’s valuation is lower than what Musk paid for the social media business, it’s still a reversal of fortune for the company.

Investment firm Fidelity estimated in October that X was worth nearly 80% less than when Musk bought it. By December, X had recovered somewhat but was still worth only about 30% of what Musk paid, according to Fidelity.

The move also comes as Musk has been in the spotlight for his role at the Department of Government Efficiency in the Trump administration, which has raised questions about how much he cares about his companies, especially Tesla. Combining X and xAI could allow Musk to streamline his efforts.

Musk is also trying to position himself as a leader in the field of artificial intelligence (AI). Earlier this year, he led a group of investors in an unsuccessful attempt to acquire ChatGPT maker OpenAI for nearly $100 billion.

It’s unclear exactly how the acquisition would benefit Musk’s AI ambitions. But closer integration with X could allow xAI to bring its latest AI models and features to a wider audience more quickly.