Elon Musk has announced that his social media platform X, formerly known as Twitter, has been acquired by his artificial intelligence company, xAI, in an all-stock deal.
“xAI has acquired X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion, accounting for $12 billion in debt,” Musk said in a post on Friday. “xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent.”
He added: “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.”
Musk originally purchased Twitter for $44 billion in October 2022, taking the company private while vowing to champion free speech and overhaul its operations. Since then, he has been widely criticized for removing legacy verification badges, drastically loosening content moderation policies, and reinstating previously banned accounts. The platform—rebranded as X—has seen a sharp decline in valuation and a significant exodus of high-profile advertisers, raising concerns about its long-term sustainability and direction under Musk’s leadership.
Founded by Musk in 2023, xAI is focused on building artificial general intelligence to “understand the universe,” and recently launched its own chatbot, Grok, which is integrated into the X platform.
Trending Now
