EU Scrutinizes Musk’s xAI Acquisition of X Amid Regulatory Concerns

The European Union has intensified regulatory scrutiny over Elon Musk's restructuring of X under xAI, a MOVE that could redefine how large tech firms interact with EU law. The March acquisition, which valued xAI at $80 billion, has prompted Brussels to assess whether penalties under the Digital Services Act (DSA) should extend to Musk's broader corporate ecosystem, including SpaceX and Neuralink.

European Commission spokesperson Thomas Regnier confirmed inquiries into X's corporate changes, signaling potential recalibration of fines tied to global revenue. The DSA empowers the EU to levy penalties up to 6% of annual turnover for violations involving illegal content or transparency failures—a mechanism now being tested against Musk's vertically integrated empire.