In a bold move that merges two of Elon Musk’s ventures, xAI, his artificial intelligence startup, has officially acquired X, the social media platform once known as Twitter, in an all-stock transaction valued at $33 billion.
The announcement, made by Musk on Friday via a post on X, marks a significant milestone for both companies, signaling the beginning of an integration that will combine vast data resources with cutting-edge AI models.
Musk shared the details of the deal, revealing that the merger positions xAI at a total valuation of $80 billion, while X itself is valued at $33 billion—after factoring in $12 billion in debt.
“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),” Musk wrote.
He also emphasised that the futures of xAI and X are now intertwined, stating, “Today, we officially take the step to combine the data, models, compute, distribution, and talent.”
Despite the excitement surrounding the acquisition, several crucial details remain unclear, particularly regarding leadership integration and regulatory scrutiny.
While Musk underscored the strategic alignment between xAI’s advanced AI models and X’s vast data troves, it remains to be seen how the two companies will integrate operationally.
This acquisition follows Musk’s earlier purchase of X (formerly Twitter) in October 2022 for a hefty $44 billion. However, the deal has not been without controversy.
In January, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Musk, accusing him of failing to timely disclose his ownership of more than five percent of Twitter shares.
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The SEC claims that this delay allowed Musk to purchase stock at artificially low prices, an allegation the billionaire has vigorously denied.
Musk has since criticized the SEC, accusing the agency of focusing on minor issues while ignoring more serious offenses.
xAI, which Musk launched two years ago with the lofty goal of understanding the true nature of the universe, has already raised significant capital.
In December 2024, the company completed a Series C funding round that brought in $6 billion, boosting its valuation to $45 billion. Earlier this year, Musk also unveiled Grok-3, an AI model designed to expand xAI’s capabilities and further solidify its position in the rapidly growing artificial intelligence sector.
As xAI takes control of X, the tech world watches closely for the next steps in this high-stakes merger and the potential shift in the landscape of both AI and social media.
