In a groundbreaking move, Elon Musk‘s artificial intelligence firm, xAI, has acquired X, the social media platform formerly known as Twitter, for $33 billion. The entire $45 billion deal includes $12 billion in debt, effectively merging two of Musk’s portfolio companies to create an AI-integrated microblogging platform. Musk announced the merger via a post on X, stating, “The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).”
Why did xAI buy X?
Musk originally purchased X for $44 billion in 2022. Explaining the rationale behind the merger, he stated, “xAI and X’s futures are intertwined. Today, we officially take the step to combine data, models, computing, distribution, and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
What is xAI?
Founded in 2023 by Elon Musk, xAI aims to develop cutting-edge AI models to rival industry giants such as OpenAI, Google, and Microsoft. The startup recently secured $10 billion in a funding round, valuing the company at $75 billion. According to xAI’s website, the company’s mission is to create AI that advances human comprehension and capabilities. “Our approach to rapid development and iteration allows us to innovate at breakneck speeds. We’re not interested in speed for speed’s sake—we’re here to solve real problems,” the site reads.
@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…
— Elon Musk (@elonmusk) March 28, 2025
Based in San Francisco, California, xAI boasts a team of seasoned AI experts with experience in high-profile projects, including GPT and Google DeepMind. Its flagship product, Grok, is an AI chatbot designed to offer real-time responses, competing directly with models like OpenAI’s ChatGPT and Google’s Gemini.
Integration with X platform
Grok has already gained significant popularity and has been seamlessly integrated with the X platform. Leveraging data from social media interactions, xAI has refined Grok’s intelligence and content capabilities, enhancing user engagement and platform dynamism.
By merging xAI with X, Musk aims to create a powerful AI-driven social media ecosystem where artificial intelligence and human interaction coexist.