Elon Musk Sells X to His AI Company xAI in $33 Billion All-Stock Deal
Billionaire entrepreneur Elon Musk revealed on Friday that he has sold social media platform X (formerly Twitter) to his artificial intelligence firm, xAI, in a massive $33 billion (€30.5 billion) all-stock transaction. Musk initially acquired Twitter over two years ago before rebranding it as X.
Since both X and xAI are privately held companies, they are not obligated to publicly disclose their financial details. Musk, who also leads SpaceX and Tesla, shared the news in an X post, stating that the merger will “unlock immense potential by combining xAI’s cutting-edge AI technology with X’s vast user base.”
“The futures of xAI and X are deeply connected,” Musk wrote. “Today, we’re officially bringing together our data, models, computing power, distribution networks, and talent to create something transformative.”
He added that the newly merged company will “deliver smarter, more meaningful experiences to billions of people while staying committed to our core mission of pursuing truth and expanding knowledge.”
According to Musk, the deal values xAI at 80billion(€74billion)andXat80billion(€74billion)andXat33 billion (€30.5 billion).
Musk’s Vision for xAI
The tech billionaire, who also advises former President Donald Trump on an unofficial “DOGE department,” purchased Twitter for $44 billion (€40 billion) in 2022. After taking over, he drastically reduced staff, overhauled policies on hate speech and misinformation, and rebranded the platform as X.
xAI was launched a year later and has since grown rapidly. “In just two years, xAI has emerged as one of the world’s top AI labs, developing advanced models and data centers at an unprecedented pace,” Musk stated.
Last December, Musk announced plans to expand xAI’s supercomputer, Colossus, to compete with rivals like OpenAI. The upgrade includes increasing the number of graphics processing units (GPUs) to accelerate AI model development.
It remains unclear whether this acquisition will bring immediate changes for X users. xAI already uses data from X posts to train its AI models, and premium subscribers currently have access to its AI chatbot, Grok.
The merger signals Musk’s ambitious push to integrate AI and social media, potentially reshaping how users interact with the platform in the future.
