Elon Musk Sells X to xAI in $45 Billion Deal

Elon Musk has announced the sale of his social media platform X (formerly known as Twitter) to his artificial intelligence company xAI, in an all-stock transaction valued at $33 billion. This valuation includes $12 billion in debt, bringing the total to $45 billion. Musk stated that the merger aims to combine xAI’s advanced AI capabilities with X’s extensive user base creating enhanced, intelligent experiences for users.

Musk who acquired Twitter in 2022 for $44 billion rebranded it as X and implemented significant changes including staff reductions and policy overhauls. Despite initial controversies and a decline in valuation, recent reports indicate a recovery with X’s current valuation reflecting a reversal of fortunes.

xAI, founded by Musk in 2023, has developed the Grok chatbot, which is already integrated into X. The merger is expected to further integrate xAI’s AI models with X’s platform, potentially accelerating the deployment of advanced AI features to a broad audience.

The combined entity is valued at $80 billion underscoring the strategic importance of this consolidation. Musk emphasized that the integration of data, models, compute resources, distribution channels, and talent from both companies will unlock immense potential, delivering smarter and more meaningful experiences to users.