Elon Musk sells X (Formerly Twitter) for $33 billion to his AI company xAI
Elon Musk’s bold move reshapes the AI and social media landscape—X and xAI join forces to create the ultimate "everything app" with cutting-edge technology.
Elon Musk's artificial intelligence company, xAI, has acquired the social media platform X (formerly Twitter) in an all-stock transaction. This deal values xAI at $80 billion and X at $33 billion, including $12 billion in debt.
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Musk’s vision: Integrating AI and social media for a smarter future
Musk emphasized that merging xAI's advanced AI capabilities with X's extensive reach will unlock immense potential, aiming to create smarter and more meaningful user experiences. He highlighted the strategic importance of combining data, models, computation, distribution, and talent from both companies.
Since acquiring Twitter in 2022 for $44 billion, Musk has rebranded it as X and implemented significant changes, including workforce restructuring and feature modifications. Despite initial challenges, X has seen nearly $1 billion in new equity and projected growth in advertising revenues.
Musk’s vision advances: xAI and X merge to revolutionize AI-powered social media
The acquisition is expected to enhance xAI's competitive edge in the AI sector, particularly through the integration of Grok, xAI's chatbot, into X's platform. This integration aims to provide users with innovative and personalized experiences, leveraging the strengths of both companies.
This strategic move reflects Musk's vision of creating an "everything app" by combining social media and advanced AI technologies, positioning the merged entity to compete more effectively in the evolving tech landscape.
