#the-verge

xAI Acquires X #

xAI buys X for $33 billion on paper

Aside from the obvious lunacy of having a social media platform that’s able to be sold through a single person’s decision, this acquisition further shows monetization through directly selling user-created content to AI companies. A major example of this is with Reddit, who pivoted to utilizing user posts in AI applications, rather than relying solely on advertisements to generate revenue. Both X and Reddit have shared many similarities when it comes to the protection of data, most notably heavily increasing monetization of their respective APIs. While this primarily created community outrage due to third-party clients being unable to pay the exorbitant prices, API monetization was mostly a response to the new invaluable state of data being formed by the training of LLMs. Since the APIs previously provided the sole authorized way to access platform data, by monetizing it, both X and Reddit effectively put a price on their user data and increased their control of it. As a result, in the same way that Google and OpenAI have deals with Reddit to access a valuable human-written corpus, xAI is now able to use a vast library of X posts exclusive to itself.