In a recent court filing, Twitter revealed a major development: it no longer exists. The news of this merger came as a surprise to many, as Musk had not publicly announced it before the court filing. However, it appears that he had been planning it for some time. In April 2022, he registered three separate companies in Delaware to facilitate his purchase of Twitter: X Holdings I, II, and III. According to the deal, Twitter would merge with X Holdings II, while X Holdings I would serve as the merged entity’s parent company and X Holdings III would take on the $13 billion loan that a group of big banks provided Musk to help cover the $44 billion purchase.
However, the official structure after Musk’s takeover was set to be short-lived. According to the Nevada secretary of state’s online business portal, Musk registered two new businesses in the state on March 9: X Holdings Corp, and X Corp. Then, on March 15, he applied to merge those Nevada businesses with two of his existing companies: X Holdings I with X Holdings Corp, and Twitter Inc. with X Corp. In the latter’s case, the articles of the merger mandate that X Corp. fully acquire Twitter, meaning that “Twitter Inc.” no longer exists as a Delaware-based company. Now it’s part of X Corp, whose parent company is the $2 million X Holdings Corp.
But why did Musk choose to merge Twitter with X Corp, and why is it established in Nevada?
One possible reason is Musk’s attachment to the letter X, which has appeared in many of his business ventures over the years, including SpaceX, Tesla’s Model X car, and the three X Holdings corporations. Musk has even stated that he plans to create an “everything app” named after the letter X, which could resemble China’s WeChat, the combination messaging/social networking/payment app that boasts a billion users. Twitter’s functions would play an important role in this megasize app.
Another possibility is that X is meant to be more of an everything company than an everything app. In late 2020, YouTuber and longtime Tesla investor Dave Lee tweeted that Musk should “form a holding company called X” to serve as the “parent company of Tesla, SpaceX, Neuralink, and Boring Company.” Musk responded positively to the suggestion. In that light, Musk’s choice of Nevada as home base for X Corp takes on extra significance, considering he has established some of his largest ventures in the Silver State, including a Tesla Gigafactory near Reno, several Boring Company projects, and now at least three businesses, one of which is part of an overarching X company.
However, Musk’s plans for X Corp and the potential “everything app” face significant challenges. Congress and regulatory agencies such as the Federal Trade Commission are taking a firmer stance against tech monopolies, and investors might not be happy if Musk tries to stuff each of his separate companies into X Holdings Corporation.
In a recent tweet, Musk announced the formation of X.AI, a new company that will focus on developing advanced artificial intelligence technologies. He also posted several job openings for positions related to AI, including machine learning engineers, AI researchers, and data scientists.
These job announcements are not the first time Musk has expressed interest in AI. He has previously warned about the dangers of AI and called for increased regulation of the technology. He has also founded several companies that focus on AI, including Neuralink, which is developing brain-machine interfaces, and OpenAI, which is working on developing safe and beneficial AI technologies.
It is likely that Musk sees AI as a key component of his plans for the “everything app” or the “everything company” named after the letter X. Such an app or company would aim to provide a comprehensive suite of services, including messaging, social networking, payment, and more. AI could play a crucial role in this by providing intelligent, personalized services to users based on their preferences and behavior.
Furthermore, Musk’s interest in AI could also be driven by his long-term vision of enabling human-machine symbiosis through technologies such as brain-machine interfaces. By developing advanced AI technologies, Musk may be working towards creating a future in which humans can seamlessly interact with machines and even enhance their cognitive abilities.
Musk’s recent announcement of X.AI and his increasing job announcements for AI-related positions are likely tied to his plans for the “everything app” or the “everything company” named after the letter X. By developing advanced AI technologies, Musk may be working towards creating a future in which humans can seamlessly interact with machines and even enhance their cognitive abilities.
Musk has expressed concern that AI could become too powerful and ultimately threaten humanity’s existence. In 2015, he called AI “our biggest existential threat” and has continued to warn of the potential dangers of the technology. He has called for increased regulation of AI development and has even argued that AI should be subject to the same safety standards as cars and planes.
