Elon Musk’s artificial intelligence company, xAI, has officially acquired X, the social media platform formerly known as Twitter.
The deal, announced by Musk in a post on X, was structured as an all-stock transaction. This acquisition values xAI at $80 billion and X at $33 billion, factoring in its $12 billion debt.
X and xAI: A Strategic Merger
Musk initially purchased Twitter in 2022 for approximately $44 billion, transforming it into X. Over the past two years, the platform has undergone significant changes, including workforce reductions and a push toward becoming an “everything app.”
In his announcement, Musk emphasized the synergy between xAI and X, describing their futures as “intertwined.” He stated that the merger would unlock enormous potential by combining xAI’s cutting-edge artificial intelligence capabilities with X’s vast user base of over 600 million active users.
“X is the digital town square where people go for real-time information,” Musk said. “By integrating xAI’s advanced models, data, and compute power with X’s distribution and talent, we can create smarter, more meaningful experiences for billions of users worldwide.”
Aiming for Future Growth and Innovation
Founded in 2022, xAI has quickly risen as a prominent AI research lab, competing with industry leaders like OpenAI and Google DeepMind. The company has been building AI models and data centers at an unprecedented pace, aiming to revolutionize how AI integrates with digital platforms.
Musk envisions this merger as a major step toward advancing artificial intelligence while maintaining X’s mission of providing real-time, unfiltered information. He also expressed appreciation for the “hardcore dedication” of teams at both companies and signaled that this move is just the beginning of more innovations to come.
With this acquisition, Musk is further solidifying his position at the forefront of AI and social media, creating a powerful ecosystem that blends communication, data, and artificial intelligence to accelerate human progress.