In a bold move that further consolidates his tech empire, Elon Musk’s artificial intelligence firm, xAI, has acquired his own social media platform X (formerly Twitter) in an all-stock deal valued at $33 billion.
Musk shared the news via a post on X, highlighting that the transaction pegs xAI’s valuation at $80 billion, while valuing X at $33 billion—factoring in $12 billion of existing debt.
“The futures of xAI and X are now united,” Musk stated. “Today we officially merge data, compute, distribution, and talent.” The merger is expected to bolster the development of xAI’s Grok chatbot by integrating user-generated data from X.
Details of the deal remain under wraps, including how investors will be compensated and how leadership across both companies will be structured. Industry analysts say the move, while unexpected, wraps up another chapter in X’s turbulent history.
Musk’s growing influence spans across industries—beyond xAI and X, he leads Tesla, SpaceX, and even heads the Department of Government Efficiency (DOGE) under the Trump administration, raising questions about regulatory oversight.
This merger also tightens Musk’s rivalry with OpenAI. Earlier this year, he led a $97.4 billion bid to acquire OpenAI, which was rejected. He has since sued the company to prevent it from becoming a for-profit entity, though a judge denied an injunction request.
Founded just two years ago, xAI recently raised $10 billion, valuing it at $75 billion. The company launched Grok-3, its latest chatbot version, in February and is scaling up with the world’s largest AI supercomputer cluster in Memphis, Tennessee—nicknamed “Colossus.”
The integration with X is seen as a strategic play to enhance xAI’s model training and product distribution through real-time user data and engagement.
Back in 2022, Musk bought Twitter for $44 billion, famously tweeting “the bird is freed” post-acquisition. The platform saw major upheavals including mass layoffs and advertiser exodus but has seen a rebound in brand partnerships recently.
Meanwhile, a U.S. judge has denied Musk’s motion to dismiss a lawsuit alleging he defrauded Twitter shareholders by delaying the disclosure of his early investment in the company.