Elon Musk merged his AI startup xAI with social media platform X in an all-stock deal, according to The Wall Street Journal. The deal was unconventional and involved X and xAI exchanging shares for stock in a new holding company, with no cash changing hands. Morgan Stanley and Sullivan & Cromwell facilitated the transaction, focusing more on their long-term relationship with Musk than deal fees. Legal experts say the companies face little risk of shareholder lawsuits since they share investors and are incorporated in Nevada. The AI startup is merging with the social media platform to gain access to the platform’s real-time, proprietary data from its hundreds of millions of active users.
