Elon Musk has sold social media platform X (formerly Twitter) to his artificial intelligence company, xAI, in an all-stock transaction valued at $33 billion. The deal marks a major shift in Musk’s strategy to integrate social media and AI, and values xAI at a staggering $80 billion.
Announcing the move on X, Musk said the merger will “unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
Both companies are privately held and not obligated to disclose financial details publicly. However, Musk shared that the valuation places X at $33 billion—significantly less than the $44 billion he paid to acquire it in 2022.
Since taking over the platform, Musk has implemented sweeping changes, including significant layoffs, relaxed moderation policies, and a rebranding from Twitter to X. He envisioned X as a future “everything app,” combining messaging, payments, and more.
Musk launched xAI in 2023 to develop cutting-edge artificial intelligence technologies and compete directly with industry leaders like OpenAI. In a post, he touted xAI’s rapid progress: “Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale.”
The acquisition of X by xAI marks a key milestone in Musk’s broader ambition to fuse AI with mass communication platforms, potentially reshaping how users engage with both technology and media.
