EU Launches Probe Into Musk’s xAI Over $80B X Platform Acquisition

European regulators are scrutinizing Elon Musk's xAI following its blockbuster acquisition of social media platform X. The $80 billion deal, completed in March, has drawn attention from the European Commission over potential violations of the Digital Services Act.

At issue is whether corporate restructuring post-acquisition could affect penalty calculations under the DSA. Fines under the regulation are tied to global revenue, exposing large platforms to significant financial risk. The Commission has begun formally requesting details from X about structural changes since the takeover.

This case marks a potential watershed moment for AI and social media regulation in Europe. A decision is expected before the EU's August recess, which could see Musk's companies become the first to face DSA penalties. The outcome may establish precedents affecting how tech giants operate across the continent.