Last month, the Information reported OpenAI was considering buying io Products — unfortunate capitalization theirs — for around $500 million. The company, founded by Jony Ive and employing several ex-Apple designers and engineers, was already known to be working with OpenAI, but it was still an external entity. Now, it is not, to the tune of over $6 billion in equity.

OpenAI today published a press release and video — set in LoveFrom’s distinctive proprietary serif face — featuring Ive and Sam Altman in conversation. There is barely a hint of what they are working on but, whether because of honesty or just clever packaging, it comes across as an earnest attempt to think about the new technologies OpenAI has successfully brought to the world as part of our broader cultural fabric. Of course, it will be expressed in something that can be assembled in a factory and sold for money, so let us not get too teary-eyed. We have heard a similar tune before.

The video promises revealing something “next year”.

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Kurt Wagner and Katie Roof, Bloomberg:

Elon Musk said his xAI artificial intelligence startup has acquired the X platform, which he also controls, at a valuation of $33 billion, marking a surprise twist for the social network formerly known as Twitter.

This feels like it has to be part of some kind of financial crime, right? Like, I am sure it is not; I am sure this is just a normal thing businesses do that only feels criminal, like how they move money around the world to avoid taxes.

Wagner and Roof:

The deal gives the new combined entity, called XAI Holdings, a value of more than $100 billion, not including the debt, according to a person familiar with the arrangement, who asked not to be identified because the terms weren’t public. Morgan Stanley was the sole banker on the deal, representing both sides, other people said.

For perspective, that is around about the current value of Lockheed Martin, Rio Tinto — one of the world’s largest mining businesses — and Starbucks. All of those companies make real products with real demand — unfortunately so, in the case of the first. xAI has exactly one external customer today. And it is not like unpleasant social media seems to be a booming business.

Kate Conger and Lauren Hirsch, New York Times:

This month, X continued to struggle to hit its revenue targets, according to an internal email seen by The New York Times. As of March 3, X had served $91 million of ads this year, the message said, well below its first-quarter target of $153 million.

This is including the spending of several large advertisers. For comparison, in the same quarter in the pre-Musk era, Twitter generated over a billion dollars in advertising revenue.

I am begging for Matt Levine to explain this to me.

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