Elon Musk’s xAI Acquires X in $33 Billion Deal
xAI, Elon Musk’s artificial intelligence venture, has acquired X in an all-stock transaction valued at $33 billion, in a bid to integrate AI with social media.
Musk said, “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.”
Musk, who bought Twitter for $44 billion in 2022 and rebranded it as X, stated that combining xAI’s AI capabilities with X’s global reach will unlock significant potential. The deal values xAI at $80 billion and X at $33 billion, underscoring its strategic importance.
“The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress,” Musk added.
Founded in 2023, xAI has developed AI models like Grok and Aurora. The merger is expected to enable resource sharing, with X leveraging xAI’s AI tools while xAI gains access to X’s extensive user base and data.
The acquisition signals a turnaround for X, which had seen a decline in value following Musk’s initial takeover.
Reports indicate that the platform’s valuation rebounded to its original purchase price before the merger, reflecting renewed investor confidence.
While specific changes for X users remain unclear, the integration is expected to enhance user experiences by leveraging AI-driven innovations.
This move highlights Musk’s commitment to advancing AI technology and embedding it into mainstream digital platforms.
