X – Tech | Business | Economy https://techeconomy.ng Tech | Business | Economy Wed, 03 Jun 2026 09:23:16 +0000 en-GB hourly 1 https://wordpress.org/?v=7.0 https://techeconomy.ng/wp-content/uploads/2025/06/cropped-256Px-32x32.png X – Tech | Business | Economy https://techeconomy.ng 32 32 Data on Trial: MTN Nigeria Submits Mobile Data Mechanics to Independent Public Scrutiny https://techeconomy.ng/data-on-trial-mtn-nigeria-submits-mobile-data-mechanics-to-independent-public-scrutiny/ https://techeconomy.ng/data-on-trial-mtn-nigeria-submits-mobile-data-mechanics-to-independent-public-scrutiny/#respond Wed, 03 Jun 2026 10:39:15 +0000 https://techeconomy.ng/?p=182776 When Nigeria’s largest telecommunications operator invites the public to cross-examine its own engineers, it is either a masterclass in corporate transparency or a very calculated bet on its own technical credibility. Possibly both.

MTN Nigeria has announced a public inquest scheduled for June 6, 2026, in which the mechanics of mobile data delivery, a subject that has fuelled persistent consumer frustration and regulatory scrutiny, will be subjected to structured, adversarial examination before a live national audience.

The context matters. Nigeria’s mobile internet subscriber base crossed 153.2 million in Q1 2026, according to data from the Nigerian Communications Commission (NCC), operating within an ecosystem where data traffic has grown exponentially. Yet subscriber trust has not kept pace with subscriber numbers.

Complaints about data depletion, speed inconsistencies, and opaque billing have remained a stubborn feature of the consumer experience, a gap between what networks advertise and what users believe they receive.

MTN’s response to that credibility deficit is structurally unusual. Rather than the standard combination of press releases and technical explainers, the operator is staging what it describes as a courtroom-style proceeding, with defined prosecution and defence teams, live evidence, and independent verification.

The design of the prosecution side is particularly notable. MTN is not selecting its questioners. Instead, it is partnering with independent media channels to allow Nigerians to vote for a five-member prosecution team drawn from technology creators and consumer advocates, figures the public, not the company, deems credible.

Those selected will be granted autonomous cross-examination rights over MTN’s technical executives, network engineers, and third-party mobile hardware specialists who will form the defence.

To address the obvious risk of a process that looks independent but isn’t, MTN has brought in KPMG to independently verify every diagnostic tool and backend demonstration utility used during the session. That decision is significant.

KPMG’s involvement raises the accountability stakes considerably and narrows the room for the kind of selective data presentation that has previously undermined corporate-led transparency exercises in the sector.

The entire proceeding will be streamed live across television, YouTube, Facebook, X, and TikTok, a distribution footprint that signals MTN is not treating this as an industry event but as a national public conversation.

What makes the initiative analytically interesting is what it reveals about the current state of the telco-consumer relationship in Nigeria.

The very existence of a format this elaborate, prosecution teams, independent auditors, live streaming, suggests that conventional communication has failed to close the trust gap. Operators have explained, demonstrated, and published. Subscribers remain sceptical.

The inquest format is, in essence, an admission that the burden of proof now requires a different standard of evidence.

Whether the June 6 event delivers on that standard will depend on execution. The selection process for the prosecution team, the quality of evidence tabled by both sides, and the degree to which KPMG’s verification role is genuinely independent rather than ceremonial will determine whether this becomes a replicable model for consumer accountability in African telecoms, or a well-produced exercise that changes little.

The venue is yet to be confirmed. The question it is trying to answer, however, has been on the table for years.

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X Rolls Out Auto-Translate Globally, Adds Grok-Powered Photo Editor on iOS https://techeconomy.ng/x-auto-translate-grok-photo-editor-ios/ https://techeconomy.ng/x-auto-translate-grok-photo-editor-ios/#respond Wed, 08 Apr 2026 14:07:22 +0000 https://techeconomy.ng/?p=179272 Social media platform X has started rolling out auto-translate for posts worldwide, alongside a new photo editing feature for its iOS app.

The update began late Tuesday, with the company saying posts in any language can now be translated automatically for users across the platform.

The feature, powered by Grok, the AI model developed by xAI, has a translation quality which has “improved substantially over the last couple months.”

Users can still manage the feature as they want. Any user who prefers reading posts in their original language, can turn off auto-translate through the settings icon on each translated post.

At the same time, X is adding new image editing tools within its iOS app. The update brings basic options like drawing and text, along with a blur tool that allows users to hide parts of an image, including faces or sensitive details.

There is also a new option to edit images using simple written instructions. Users can ask Grok to change how a picture looks.

For example, they can request a version styled like a painting, and the system will generate it.

The company says the update will reach Android devices later, though no date has been confirmed.

These changes place X alongside other tech companies already providing similar tools. Reddit has been testing translation features for some time, while Google and Adobe have introduced image editing systems that respond to written prompts.

The rollout of auto-translate also comes after the issues raised against X and its owner Elon Musk. At the time, regulators and users complained about misuse of AI tools, especially where images were altered without consent.

The company later limited some of those features to paying users.

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SUBMIT ENTRY to GAMSU Ideal School Campaign https://techeconomy.ng/submit-entry-to-gamsu-ideal-school-campaign/ https://techeconomy.ng/submit-entry-to-gamsu-ideal-school-campaign/#respond Sat, 28 Feb 2026 08:19:48 +0000 https://techeconomy.ng/?p=176925 The Gamaliel & Susan Onosode Foundation (GAMSU) has officially launched the 2026 edition of its Ideal School Campaign, an initiative designed to identify and renovate one public school in Nigeria that requires critical infrastructural support.

Founded in 2013, GAMSU remains committed to improving the lives of children and young people through innovative and flexible educational opportunities.

The Ideal School Campaign reflects the Foundation’s long-standing belief that learning environments matter, and that safe, dignified spaces are essential for meaningful education.

The Campaign

The Ideal School Campaign is an open nomination initiative inviting communities across Nigeria to nominate a public school in need of renovation.

Communities, alumni groups, parents, teachers, and concerned citizens are encouraged to submit nominations, accompanied by evidence that clearly demonstrates the school’s needs.

Rather than selecting at random, GAMSU will conduct a structured evaluation process, considering:

  • The severity of the infrastructural need
  • The potential impact of the intervention
  • Feasibility and logistics
  • Available funding

Open Nomination Process

Public primary and secondary schools in Cross River, Akwa Ibom, Kaduna, and Nassarawa States are eligible for nomination.

Teachers, parents, community leaders, alumni, and education stakeholders are invited to submit nominations through the official online form.

Nomination Period: February 9 – February 28, 2026
Assessment Period: March 1 – March 31, 2026
Selected School Announcement: April 2026

All submissions will be reviewed using a transparent and standardised evaluation framework based on:

  • Infrastructure condition
  • Safety risks
  • Access to water and sanitation
  • Enrollment and impact potential
  • Community readiness and sustainability

Visual documentation shared via Instagram or X may support nominations, but all schools must be officially nominated through the online form to be considered.

How to Nominate

Nominations must be submitted through the official GAMSU Ideal School Campaign page here.

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Paradigm Initiative: Technology-Facilitated Gender-Based Violence (TFGBV) Surges across Africa https://techeconomy.ng/paradigm-initiative-technology-facilitated-gender-based-violence-tfgbv-surges-across-africa/ https://techeconomy.ng/paradigm-initiative-technology-facilitated-gender-based-violence-tfgbv-surges-across-africa/#respond Thu, 11 Dec 2025 18:49:18 +0000 https://techeconomy.ng/?p=172536 A new study, conducted by pan-African organisation, Paradigm Initiative (PIN), warns of an alarming surge in the prevalence of Technology-Facilitated Gender-Based violence, with 67 percent of respondents being victims of at least one or multiple forms of digital violence.

Released on International Human Rights Day, the research exposes deep systemic failures, weak accountability, and unsafe online spaces driving a rapidly escalating epidemic across Cameroon, Kenya, Nigeria, Senegal, Zambia, and Zimbabwe.

PIN recognises that this gap limits both the understanding of TFGBV and the development of effective solutions. In response, this study adopts a survivor-centred approach that reframes how TFGBV is researched, discussed, and addressed.

By prioritising survivors’ perspectives, the research uncovers the emotional, social, and systemic dimensions of digital violence that formal reports and statistics often obscure.

It also interrogates how survivors navigate reporting systems, access justice, and play an informed role in digital spaces that are frequently hostile or unsafe.

A key finding of the study is that young people are disproportionately affected, with those aged 18–34 constituting the vast majority of survivors.

Most incidents of Technology-Facilitated Gender-Based Violence occurred on Facebook, WhatsApp, and X (formerly Twitter), underscoring how mainstream social media platforms continue to function as structurally unsafe spaces for many users, particularly women, activists, and advocates.

“Victims’ experiences range from sexual harassment, threats, and misogynistic attacks to severe violations such as stalking, non-consensual image sharing, hacking, sextortion, and identity-based harassment,” the report notes. “Personal testimonies reveal profound emotional, psychological, and reputational harm.”

The study also highlights that formal systems such as the police, employers, and public institutions, remain underutilised, largely due to fear, mistrust, or an expectation of inaction.

While the findings expose wide-ranging gaps across platforms, institutions, and legal frameworks, they also highlight survivors’ resilience and their continued efforts to seek safer digital environments.

In light of these findings, PIN calls for urgent action to make online spaces safer for everyone, in line with this year’s Human Rights Day theme, “Human Rights, our everyday essentials.”

Addressing these systemic gaps is critical to advancing democratic engagement, promoting media pluralism, fostering digital inclusion, and achieving gender equality across Africa.

The report can be found here.

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Cloudflare Outage Cripples ChatGPT, X, League of Legends, More Online Services https://techeconomy.ng/cloudflare-outage-chatgpt-x-league-of-legends-down/ https://techeconomy.ng/cloudflare-outage-chatgpt-x-league-of-legends-down/#respond Tue, 18 Nov 2025 14:43:55 +0000 https://techeconomy.ng/?p=171255 A massive internet outage originating from infrastructure giant Cloudflare caused service failure for countless users and some of the world’s most popular digital platforms this morning, Tuesday, November 18, 2025. 

Services including ChatGPT, the social media platform X (formerly Twitter), the gaming service League of Legends, and even firms like Amazon and Spotify were suddenly rendered inaccessible for a significant period. 

I can confirm the immediate disruption was linked to Cloudflare’s core network.

The root cause of the crippling global disruption has been traced back to a seemingly routine operation. Cloudflare disclosed that a misconfiguration occurred during scheduled maintenance at its Santiago (SCL) data centre. 

This maintenance was planned for a three-hour window between 12:00 and 15:00 UTC today. Instead of a smooth update, the error triggered a dangerous cascade of failures that propagated across Cloudflare’s entire worldwide network, the digital backbone that thousands of websites rely on for performance and security.

Users across the globe were immediately confronted with widespread HTTP 500 errors, system failures on Cloudflare’s own Dashboard, and non-functional APIs. For many, this meant complete inaccessibility of their chosen services for over an hour.

To contain the uncontrolled spread of the outage issue and attempt remediation, Cloudflare was forced to temporarily deactivate certain services for users in the United Kingdom. 

Specifically, the company issued a notice stating: “During our attempts to remediate, we have disabled WARP access in London. Users in London trying to access the Internet via WARP will see a failure to connect.”

Cloudflare’s WARP is a zero-trust access tool, part of the company’s initiative to provide content delivery network (CDN) services and protection against attacks like DDoS. I believe this temporary shutdown was a last-ditch effort to stabilise their core network functions.

By 8:15 a.m. UTC, the company reported initial success in its recovery operations. Importantly, it confirmed that they had reinstated services for UK users, stating: “We have re-enabled WARP access in London.

The company also noted that error levels for their Access and WARP services had “returned to pre-incident rates.” While this shows a partial return to normal, the company is still investigating the full extent and complete root cause of the internal service degradation.

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X to Launch ‘Handle Marketplace’ for Premium Users to Claim Inactive Usernames https://techeconomy.ng/x-to-launch-handle-marketplace/ https://techeconomy.ng/x-to-launch-handle-marketplace/#respond Mon, 20 Oct 2025 16:40:49 +0000 https://techeconomy.ng/?p=169624 X (formerly Twitter) is launching a new feature called the Handle Marketplace, an industry-first solution that lets users claim inactive usernames, some for free, others for thousands of dollars.

The marketplace, available exclusively to Premium subscribers, allows users to search for handles that are no longer in use and either request or purchase them. X says both complimentary and paid options will be available, with some rare handles priced as high as $2,500 to over seven figures.

According to the company, “The X Handle Marketplace is our industry-first solution to redistribute handles that are no longer in use. Eligible Premium subscribers will be able to search and make requests, with both complimentary and paid options available.”

The marketplace categorises usernames into two main types; Priority and Rare handles.

“Priority” handles, such as @GabrielJones, @PizzaEater, and @ParadoxAI, can be requested at no additional cost by Premium+ and Premium Business subscribers. Once approved, the handle is transferred for free. 

However, if a subscriber cancels or downgrades their plan, the old handle automatically returns to their account after a 30-day grace period.

“Rare” handles, on the other hand, include short, generic, or culturally valuable names like @Pizza, @Tom, and @One. These are not available through standard requests. Instead, they will be offered through public drops or direct, pre-priced purchases by invitation only.

During public drops, multiple users can apply for the same handle. Selection depends on factors such as a user’s past contributions, intended use, and overall engagement on the platform. 

Direct purchases will consider popularity, character length, and cultural relevance in pricing. Once bought, a rare handle remains with the buyer even if they cancel their Premium subscription.

The launch is another big move by Elon Musk to monetise X beyond advertising. Since taking over, Musk has introduced several paid features, including Premium and Premium+ subscriptions, paid verification (blue checkmarks), and ad revenue sharing with creators.

With advertising revenue said to have dropped by more than 50% since Musk’s acquisition, X appears to be doubling down on direct user payments as a way to sustain operations and attract more paying users.

The company says requests for handles will be reviewed within three business days, though not all will be approved. Once a request is granted, the user’s previous handle is safely reserved and cannot be claimed by others.

Regulating the “Digital Real Estate” Market

Usernames have long been treated as a form of digital real estate, with some short or valuable ones traded on the black market for thousands of dollars. X’s new marketplace is designed to legitimise and regulate this demand through a controlled, transparent process.

X explained on its help page that it chose to create a marketplace rather than simply releasing all inactive handles at once to “prevent bot spam or misuse.” The company noted that the new system “allows for fair and secure distribution through a controlled process.”

Users can also “register interest” in specific handles not yet available by adding them to a Watchlist. If the handle becomes eligible later, X will notify them.

Reactions and Concerns

This development has already stirred reactions about digital identity ownership, with warnings that it could lead to impersonation risks or loss of legacy content, particularly for deceased users or defunct brands whose handles may now be reassigned.

Other social platforms have had similar issues. Instagram and TikTok have had cases of username squatting, but neither has launched an official marketplace. Reddit and Discord have discussed comparable ideas but haven’t implemented them at scale.

What makes X different is its tiered access system, pricing transparency, and integration with its subscription tiers, placing the marketplace as a potential driver for user engagement.

In the end, this move blends commerce, community, and competition.

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X to Challenge Court Ruling Upholding Government’s Content Takedown System https://techeconomy.ng/x-appeal-india-court-sahyog-portal/ https://techeconomy.ng/x-appeal-india-court-sahyog-portal/#comments Mon, 29 Sep 2025 08:31:28 +0000 https://techeconomy.ng/?p=168300 Social media giant X has confirmed it will appeal a recent ruling by the High Court of Karnataka that upheld India’s new online content removal system. 

The decision strengthens the government’s power to compel platforms to delete posts through a portal known as Sahyog, giving millions of police officers direct authority to issue takedown requests.

The court dismissed X’s petition on September 24, ruling that foreign companies cannot claim constitutional free speech rights under Article 19 of India’s Constitution. It further held that unregulated social media platforms cannot be allowed to function in what it described as a state of “anarchic freedom,” particularly in cases involving offences against women.

In its first official response, X said: “We will appeal this order to defend free expression.” The company added that the Sahyog portal allows content removal “based solely on allegations of illegality, without judicial review or due process for the speakers, and threatens platforms with criminal liability for non-compliance.”

Launched in October 2024 by India’s Ministry of Home Affairs, Sahyog enables over two million officers and authorised officials to file removal orders against platforms such as X, Google, Meta, YouTube, and others. 

It operates under Section 790(b) of the Information Technology Act, 2000, which strips platforms of their safe harbour protections if they fail to act on flagged material. Experts argue this system sidesteps the safeguards in Section 69A of the same Act, which require judicial oversight before content can be blocked.

The government of Prime Minister Narendra Modi has defended Sahyog, saying it is necessary to curb the spread of unlawful material and ensure accountability online. Officials argue that the new system accelerates the removal of harmful content while reducing bureaucratic delays.

Rights groups see the matter differently. Digital advocacy organisations such as SFLC.in and The Dialogue warn that Sahyog risks becoming a “censorship portal,” enabling arbitrary takedowns without transparency or the chance for users to appeal. 

Between its launch in October 2024 and April 2025, the portal has already processed 130 takedown requests, affecting platforms including Google, Apple, Amazon, and Microsoft.

The ruling carries implications well beyond India. With more than 800 million internet users, India is one of the largest digital markets in the world, and its policies often influence regulatory debates in other countries. 

Non-compliance with Sahyog orders could result in criminal liability, while compliance could undermine the company’s long-standing stance on free expression.

Elon Musk’s platform has previously clashed with governments in Brazil, Turkey, and Germany over demands for stricter content controls. India’s ruling now adds to that list.

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Elon Musk’s XChat Launches to Rival WhatsApp, Telegram, Others https://techeconomy.ng/elon-musk-xchat-launches/ https://techeconomy.ng/elon-musk-xchat-launches/#respond Mon, 02 Jun 2025 11:44:18 +0000 https://techeconomy.ng/?p=159909 Elon Musk has launched a new messaging feature on X called XChat, placing the platform in direct competition with messaging apps like WhatsApp, Telegram, and Signal. 

The rollout introduces encrypted messages, disappearing chats, and file sharing, all integrated into the existing X platform.

XChat is a total rebuild. Musk revealed the messaging system has been reconstructed from the ground up using the Rust programming language, which is known for its strong memory safety and performance. 

He also claims it uses a form of “Bitcoin-style” encryption, a phrase that has drawn attention of security experts due to its lack of clarity.

All new XChat is rolling out with encryption, vanishing messages and the ability to send any kind of file. Also, audio/video calling. This is built on Rust with (Bitcoin style) encryption, whole new architecture,” Musk posted on X.

Here’s what’s changing:

  • End-to-End Encryption: Conversations are now designed to be private. Only the sender and recipient can read messages.
  • Vanishing Messages: Users can set timers for chats to disappear, offering more control over personal data.
  • Universal File Sharing: The feature allows any kind of file to be sent—images, documents, videos—without restrictions.
  • Audio and Video Calls: Available across devices and operating systems, with no phone number required.

For now, these features are only available to a limited number of users, primarily those on the platform’s paid tiers. Wider access is expected in the coming weeks, but no exact timeline has been announced.

Security professionals have questioned the encryption claims, arguing that comparing the app’s security to Bitcoin is misleading.

Ian Miers, assistant professor of Computer Science at the University of Maryland, stated, “Bitcoin primarily uses signatures, not encryption. This is like saying, we decided to run our rocket on water, since NASA uses Hydrogen and Oxygen.”

Needless to say ‘Bitcoin style’ and ‘Rust’ are not descriptions of an encryption scheme, nor are they strong indicators of security for a messaging app. Also, unless encrypted DMs are only in app, odds are they aren’t just in Rust.”

What makes this move significant is its role in Musk’s vision. He’s not hiding the fact that he wants to turn X into a multipurpose platform, a Western version of China’s WeChat. The addition of a secure, flexible messaging tool is just one step in that transformation.

Last year, Musk announced plans to introduce payments and even dating features within the platform. Now, with the foundation of a private communications tool in place, X is inching closer to becoming a one-stop digital hub.

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“Elon Musk Just Declared War on Every AI Company” – Inside xAI’s Game-Changing Acquisition of X https://techeconomy.ng/elon-musk-xai-game-changing-acquisition-of-x/ https://techeconomy.ng/elon-musk-xai-game-changing-acquisition-of-x/#respond Mon, 31 Mar 2025 12:40:36 +0000 https://techeconomy.ng/?p=155912 Elon Musk is making moves again, and this one might be his biggest yet. His AI company, xAI, has acquired X (formerly Twitter) in an all-stock deal that values xAI at $80 billion and X at $33 billion. 

This goes beyond a business transaction to a strategic power play that puts Musk ahead of the competition in the AI industry.

The Strategy Behind the Deal

Musk bought Twitter in 2022 for $44 billion, a price many thought was too high. Now, he’s effectively repositioned it under xAI, and while the $33 billion valuation looks like a loss on paper, the move is anything but a failure.

Fernando Cao, co-founder of Thoughtleadr, described it bluntly in a thread on X:

“Elon Musk just declared war on every AI company. His $80B company, xAI, just bought X for $33B… And he now has the ONE thing OpenAI, Anthropic, & Google desperately need.”

That one thing? Data.

X is no longer just a social media platform, it’s now a real-time data goldmine with 600 million active users generating conversations, opinions, and trends every second. 

For AI companies, high-quality, diverse, and real-world data is indispensable for training better models. Most AI labs rely on scraped web data, licensing agreements, or outdated datasets. Musk now owns a direct pipeline to the internet’s raw, unfiltered human-generated content.

Data is the New Oil—But Are Nigerians Selling Theirs Too Cheap?

A Competitive Edge in AI

Musk laid out his vision in his announcement:

“@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt). Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centres at unprecedented speed and scale.”

With this deal, xAI no longer faces the same data limitations as OpenAI, Anthropic, and Google DeepMind. While they don’t easily get fresh training data, xAI has unrestricted access to an ongoing stream of human interactions, breaking news, cultural shifts, and social trends—all in real-time.

This data advantage will likely supercharge xAI’s existing models, including Grok, its AI chatbot integrated within X Premium. Unlike ChatGPT and Claude, which rely on periodically updated training sets, Grok can pull live information from X, making it more responsive and relevant in fast-changing discussions.

Musk’s goal is not limited to embedding AI into X. He sees this as the start of a fundamental transformation. In his words:

“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution, and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”

What does this mean in practice?

1. Hyper-Personalised Feeds

Current recommendation algorithms on social media are basic compared to what’s coming. With xAI’s deeper machine learning integration, X could evolve into a truly adaptive platform—one that understands not just what users engage with, but why they engage with it.

2. AI-Augmented Conversations

Imagine composing a post on X and having AI suggest improvements, fact-check in real time, or translate it instantly. Debates could be moderated by AI, reducing misinformation and clarifying misunderstandings before they escalate.

3. The “Everything App” Reality

Elon Musk has long talked about turning X into an all-in-one digital ecosystem. With AI at its core, X could integrate:

  • Content creation tools (AI-generated articles, videos, and art)
  • Virtual assistants (like an evolved version of Siri or Alexa, but deeply personalised)
  • Knowledge-sharing hubs (AI-enhanced forums, expert-driven discussions)

Cao believes this shift is already happening:

X is transforming from a social media platform into an AI-powered ecosystem. This means unprecedented opportunities for those who establish their presence on X now, before the full integration takes effect.”

He compares it to the early days of YouTube, Instagram, and TikTok, when the first wave of creators gained massive advantages. As AI-powered distribution improves, those who position themselves on X today could reap exponential benefits.

In structuring the deal so that xAI, not X, is the acquiring entity, Elon Musk sidesteps many regulatory issues. Governments around the world have cracked down on big tech consolidations, but this acquisition is framed as an AI expansion rather than a social media takeover.

For competitors like OpenAI and Google, the stakes just got higher. The AI industry is built on data, models, and compute power—and Musk has now strengthened all three pillars. He owns the infrastructure, the algorithms, and now, the world’s largest real-time dataset.

It’s a high-risk, high-reward strategy, but if Elon Musk is right, this move won’t just redefine X—it could completely change how AI is developed, deployed, and experienced worldwide.

And, as he put it in his closing statement:

“This is just the beginning.”

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Elon Musk’s X Raises $1 Billion, Valuation Holds Steady at $32 Billion https://techeconomy.ng/elon-musks-x-raises-1-billion/ https://techeconomy.ng/elon-musks-x-raises-1-billion/#respond Thu, 20 Mar 2025 13:57:38 +0000 https://techeconomy.ng/?p=155274 Elon Musk’s social media company, X (formerly Twitter), has raised nearly $1 billion in new equity funding, with its valuation at around $32 billion, the same level it held when Musk took ownership in 2022.

With the social networking platform facing financial and operational challenges, Darsana Capital Partners, an investment firm that had previously acquired a portion of X’s debt earlier this year, also contributed to the funding round. 

Another investor was 1789 Capital, a firm with a history of backing Musk’s ventures, including SpaceX and xAI.

This points to Musk’s reliance on private capital to support his business empire. SpaceX recently completed a tender offer that valued the company at around $350 billion, while xAI, Musk’s artificial intelligence startup, is reportedly seeking new funding at a valuation of $75 billion.

X’s financial structure is still complex. Musk’s $44 billion acquisition of Twitter in 2022 included at least $12.5 billion in debt, which means that despite this latest funding round, the platform’s overall enterprise value still hovers around the original purchase price.

Since Musk’s takeover, X has undergone some issues, with deep staff cuts and a wave of advertisers pulling out due to concerns over brand safety. The platform has been challenged with regaining trust among major brands that were hesitant to continue their spending.

Musk has taken an aggressive stand, filing lawsuits against major advertisers that have withheld spending. These moves, coupled with his high-profile political involvement, have added another layer of uncertainty to X’s business outlook. Some brands have returned, but the advertising landscape remains volatile.

While X’s valuation stays steady, Musk’s publicly traded company, Tesla, has been on a decline. Tesla’s stock has dropped more than 40% this year, a drop attributed to growing competition in the electric vehicle (EV) industry and Musk’s political activities, which have alienated some consumers.

The latest blow came on Tuesday when Tesla shares fell 5.3% after Chinese automaker BYD revealed a new EV that can charge at speeds comparable to refueling a petrol-powered car. This development shows more competitive pressure on Tesla, which has already been struggling with slowing sales and price cuts.

Meanwhile, X’s business outlook seems uncertain despite the recent fundraising success. Some investors are skeptical, with Fidelity Investments marking down its stake in X by 68% as of January. However, the platform has shown signs of financial stability, with reports indicating it posted $1.2 billion in adjusted earnings for 2024—matching its pre-Musk levels.

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