Why Musk is moving Twitter into a parent company called X
Christopher Hutton
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Elon Musk is trying to turn his newly acquired Twitter into an “Everything App,” also known as X.
Twitter Inc, the social platform’s corporate entity, is now considered part of X Corp., according to an April 4 filing disclosed as part of litigation in a suit filed by right-wing activist Laura Loomer. Musk confirmed this filing when he tweeted “X” early on Tuesday.
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The corporate absorption reflects Musk’s intent to take Twitter’s online framework and turn it into an “everything app” that can be used for shopping, transactions, and more.
“Twitter, Inc. has been merged into X Corp. and no longer exists,” the filing reads.
Musk has supported the creation of an “everything app” for a long time. Musk had praised the Chinese social app WeChat before and expressed an interest in making his own “everything app” in the United States, leading some to conclude that Musk may use Twitter’s framework to construct the new version of X.com.
The company filed paperwork in November 2022 with the Treasury Department that would allow Twitter to incorporate the financial technology required to process online transactions.
Musk has also begun investing in generative artificial intelligence. The billionaire had Twitter purchase approximately 10,000 graphics processing units to create a generative AI program. Musk also hired two engineers from Google’s AI research subsidiary, Deepmind. Just weeks earlier, Musk signed a letter asking AI developers to pause research for six months.
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X Corp. is owned by the holding company X Holdings Corp. X Holdings is incorporated in Nevada and based out of San Francisco, according to documents revealed in another lawsuit.
The company is struggling to develop revenue after Musk’s takeover. The company’s revenue is expected to fall by 28% in 2023, according to analysts at Insider Intelligence.