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Elon Musk Sells X to xAI in $33 Billion All-Stock Deal
Elon Musk has sold social media platform X, formerly known as Twitter, to his own artificial intelligence company xAI in a $33 billion all-stock deal.
The announcement was made on Friday, with Musk emphasizing the goal of merging advanced AI technology with X’s extensive user base to create enhanced experiences.
Both X and xAI are privately held companies, meaning they are not required to make their financials public. Musk stated that the transaction values xAI at $80 billion and X at $33 billion. The merger aims to leverage xAI’s artificial intelligence capabilities alongside X’s broad reach.
The Vision Behind the Deal
In a post on X, Musk explained the rationale behind the merger. “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,” he wrote.
@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).
— Elon Musk (@elonmusk) March 28, 2025
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…
The billionaire added that the goal is to deliver “smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.”
Musk has long been vocal about his interest in artificial intelligence and its potential to revolutionize various industries.
What the Deal Means for X and xAI
Musk bought X, previously known as Twitter, for $44 billion in 2022. Since then, he has drastically altered the platform’s operations, including cutting staff and changing policies around user verification, hate speech, and misinformation.
The merger with xAI is aimed at combining the social media platform’s data, reach, and audience with the AI company’s technological capabilities. xAI, launched a year after Musk acquired X, has already been using data from X posts to train its artificial intelligence models.
Additionally, paying X users have access to Grok, xAI’s AI chatbot, suggesting that the two companies have been integrating their services even before the formal merger.
Future Implications
It remains unclear how the merger will impact X’s users in the immediate future. However, the deal signals Musk’s broader ambition to transform X from a traditional social media platform into a more advanced, AI-driven service. The integration of xAI’s technology could result in new features and functionalities aimed at enhancing user experiences.
For Musk, the acquisition could be seen as an effort to consolidate his control over both companies and streamline their operations toward a unified goal.
