Elon Musk’s xAI buys X

Summary

Welcome back to Week in Review! Elon Musk says that xAI bought X in an all-stock deal; a16z-backed 11x faked some customers; the Lumon Terminal Pro pops up on Apple’s website; and much more. Let’s dig in! xAI buys X: X owner Elon Musk announced on X on Friday that xAI acquired X in an all-stock transaction. This combination values xAI at $80 billion and X at $33 billion. “Today, we officially take the step to combine the data, models, compute, distribution and talent,” Musk said. Fudging the numbers: More than 20 sources — including investors and current and former employees — told TechCrunch that a16z- and Benchmark-backed 11x has experienced financial struggles, largely of its own making. “They absolutely massaged the numbers internally when it came to growth and churn,” a former employee said. Block layoffs: A leaked message by Block CEO Jack Dorsey reviewed by TechCrunch revealed that the company — which owns Cash App and Square — was laying off 931 people, or 8% of the company, as part of an “org restructuring.” Dorsey’s email denies that the layoffs are for financial reasons or to replace workers with AI. This is TechCrunch’s Week in Review, where we recap the week’s biggest news. Want this delivered as a newsletter to your inbox every Saturday? Sign up here. News Image Credits:Victor J. Blue/Bloomberg / Getty Images “What, me do fraud?” The White House confirmed to TechCrunch on Friday that President Trump pardoned Trevor Milton, the founder of bankrupt hydrogen trucking startup Nikola who was convicted of fraud. The pardon comes just a few weeks after Nikola filed for Chapter 11 bankruptcy. Speaking of leaks: A leaked database seen by TechCrunch shows that China has developed an AI system that supercharges its already formidable censorship machine, extending far beyond traditional taboos like the Tiananmen Square massacre. Skunkworks spins out: Rivian’s skunkworks project was spun out of the company with a new name and $105 million in funding from Eclipse Ve...