Elon Musk announced today that his artificial intelligence firm, xAI, has acquired X, the social media platform he rebranded from Twitter, in an all-stock transaction. The deal values xAI at $80 billion and X at $33 billion—$45 billion minus $12 billion in debt—marking a significant merger of Musk’s AI and social media ventures.
In a post on X, Musk described xAI as “one of the leading AI labs in the world,” highlighting its rapid progress in building AI models and data centers since its founding two years ago. He portrayed X as “the digital town square,” boasting over 600 million active users and a transformation into “one of the most efficient companies in the world” under his leadership. “Today, we officially take the step to combine the data, models, compute, distribution and talent,” Musk wrote, signaling a strategic fusion of xAI’s AI expertise with X’s massive user base. The acquisition, he said, unites xAI’s advanced AI capabilities with X’s vast reach to “unlock immense potential.”
Musk emphasized that the combined entity will focus on delivering “smarter, more meaningful experiences” while advancing a shared mission of “seeking truth and accelerating human progress.” He credited the “hardcore dedication” of xAI and X teams for reaching this milestone, calling it “just the beginning” of a platform that could reshape human interaction and knowledge-sharing.
The deal follows Musk’s 2022 purchase of Twitter for $44 billion, after which he slashed costs and repositioned X as a hub for real-time discourse. While financial specifics remain private, the acquisition signals a strategic blend of AI innovation and social media influence under Musk’s expansive business empire.
source: Elon X post
