Entrepreneur Elon Musk has announced that his artificial intelligence company, xAI, has acquired the social media platform X in an all-stock transaction valued at $33 billion.
According to Musk, the merger “values xAI at $80 billion and X at $33 billion ($45 billion less $12 billion in debt)” and aims to “unlock immense potential.”
The integration will leverage “xAI’s advanced AI capabilities and expertise alongside X’s extensive user base,” which currently exceeds 600 million active users.
Musk initially acquired X—formerly known as Twitter—in 2022 for $44 billion. Over the past two years, the platform has undergone significant transformation, positioning it as “one of the most efficient companies in the world” with a strong foundation for scalable future growth.
Founded by Musk in March 2023, xAI has rapidly emerged as a leading AI research laboratory. The company has been developing AI models and data centers at an unprecedented pace. Musk, who also serves as the CEO of Tesla and SpaceX and an adviser to former President Donald Trump, emphasized the strategic significance of this acquisition.
“Today, we officially take the step to combine data, models, compute, distribution, and talent,” Musk stated. He further highlighted that the futures of xAI and X are “intertwined” and will work toward delivering “smarter, more meaningful experiences.” He expressed confidence that the merger would facilitate the creation of a platform that not only reflects the world but also accelerates human progress.
Describing the acquisition as “just the beginning,” Musk praised the dedication of employees at both companies. X’s Chief Executive Officer, Linda Yaccarino, also commented on the deal, writing on X, “The future could not be brighter.”
Since Musk’s takeover of Twitter in 2022, he has introduced several changes, including eliminating the free verification program, launching a paid membership system, and rebranding the company as X. However, the platform has faced financial challenges. According to a report by The New York Times, Fidelity, one of X’s investors, estimated the company’s valuation had dropped to $12 billion as of December 2024.
In contrast, xAI raised $6 billion from investors in December, increasing its valuation to between $35 billion and $40 billion—up from $24 billion in May.
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