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 deal valued at $33 billion.
Musk, who acquired Twitter in 2022 for $44 billion before rebranding it as X, stated that the combination of both companies will drive innovation by integrating xAI’s artificial intelligence capabilities with X’s vast user base. The deal places xAI’s valuation at $80 billion, with X valued at $33 billion after accounting for $12 billion in debt.
Why Musk Merged X and xAI
In a post on X, Musk explained that xAI has grown into one of the leading AI labs, focusing on developing advanced models and data centers at an unprecedented scale. By merging the two companies, he aims to leverage X’s 600 million active users to enhance AI-driven experiences.
“X is the digital town square where real-time truth is shared. By integrating it with xAI, we can create smarter, more meaningful experiences for billions while accelerating human progress,” Musk said.
The impact of this merger on X users remains uncertain. Currently, xAI uses X’s data to train AI models, and premium subscribers have access to its AI chatbot, Grok. With this acquisition, deeper AI integration into X’s platform is expected.
Musk’s AI ambitions continue to expand, with plans to develop a supercomputer, ‘Colossus,’ to compete with OpenAI. As he pushes boundaries in AI, the world watches closely to see how this latest move reshapes the future of social media.
