Friday, March 28, 2025

xAI buys X

Friday, March 28, 2025

Welcome to TC PM! We've got lots of stuff for you today: Elon Musk's xAI is buying X; OpenAI implemented some content moderation changes; there are rumblings in M&A land; and much more. Have a great weekend!

TechCrunch Top 3

Image Credits: SAUL LOEB / AFP / Getty Images

💰 X-ception: Elon Musk's xAI announced today that it bought Elon Musk's X platform in a deal that values X at $33 billion and the combination of the two entities at $80 billion. xAI's Grok LLM is already prominently featured on the social media platform.

🪽 I think I'll try driving Gravity: Lucid Motors plans on ramping up the deliveries of its Gravity SUV next month. The EV company started taking orders for the Gravity back in November and started sending the cars to employees, friends, and family in December.

⛔️ Oh, good: OpenAI didn't just release a new image generator in ChatGPT this week. The company also rolled back its content moderation policies, meaning you can use that image generator to create images involving public figures, hateful symbols, and racial features. What could go wrong?

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Afternoon must-reads

Image Credits: Elvie

😬 Watch yourself: Would you ever go see a movie about the founding of your company with the founder? Mark Zuckerberg says that he took employees to see "The Social Network" when the film came out. Cringe?

🚀 More startup M&A: Willow, a startup that builds wearable breast pumps, acquired Elvie, a startup that also makes breast pumps and other similar products. The terms of the deal weren't disclosed, but both companies have raised more than $100 million in VC funding.

🩺 Healthcare AI: There are numerous startups looking to use AI to fix workflow burdens in the healthcare space. Taxo is one of them, but it takes a slightly different approach by tapping a reasoning model, a model that shows its work, to build trust with doctors.

🎼 Status songs: WhatsApp launched a new feature today to its Status updates, which resemble Instagram stories. Now users can include brief music clips. WhatsApp can't view the songs people post due to the platform's end-to-end encryption.

🎙️ Artificial Ghibli intelligence: Today's episode of Equity breaks down OpenAI's new image generator, CoreWeave's IPO, what went down at AI sales automation startup 11x, and more!

🎥 Zelda on the big screen: Nintendo announced that the live-action Zelda film will be released in March 2027. Nintendo announced the release date through its Nintendo Today app, which the company just launched yesterday.

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Around the web

💸 Tariff troubles: When President Donald Trump announced that his 25% tariff on imported vehicles would be going into effect, it was clear that this decision positively affects Tesla. It will negatively hurt auto manufacturing markets in countries like Mexico, where 80% of its vehicle exports head to the U.S.

👀 Frank found guilty of fraud: Charlie Javice, the founder of Frank, has been found guilty of a series of fraud-related charges that stemmed from inflated numbers at the time of the company's acquisition in 2021. She faces up to 30 years in prison.