Elon Musk has announced the merger of his social media platform X with his artificial intelligence company xAI, valuing the combined entity at over $100 billion. This strategic move comes after a difficult period for X, marked by declining revenue and advertising loss, and aims to capitalize on the growing market for generative AI tools.

Walter Isaacson, biographer of Elon Musk, predicts a merger between Tesla and Musk's AI startup xAI, which would enhance Tesla's capabilities in real-world artificial intelligence. This consolidation would leverage extensive datasets from Tesla's autonomous driving and the Optimus robot, aligning with Musk’s vision of integrating his various ventures into a cohesive ecosystem.

The XAI-X merger is viewed as a strategic move within Elon Musk's expanding empire, potentially enhancing his influence in the AI sector. Analysts suggest that this deal could be advantageous for investors betting on Musk’s vision and leadership in technology innovation.