Elon Musk is building out some of the computing infrastructure for his AI startup by pairing it with the X social network—sharing facilities, equipment purchases, and a tax break in a recent deal that highlights the blurring lines between two of the billionaire’s tech businesses.
xAI, the two-year-old AI company founded by Musk, signed on to a data center deal in Atlanta that local authorities had been negotiating with X for more than a year. The 10-year agreement, finalized the day after Christmas and obtained by Fortune via a Freedom of Information Act request, shows that both X and xAI will, together, get a property tax discount—worth an estimated $10.1 million—on the $700 million in equipment the companies have already purchased to fill the center.
