- Elon Musk’s AI company, xAI, has acquired his social media platform X (formerly Twitter). It is an “all-stock deal,” valuing xAI at $80 billion and X at $33 billion after accounting for $12 billion in debt.
- Musk announced the merger would combine xAI’s advanced AI capabilities with X’s extensive reach, aiming to deliver smarter, more meaningful experiences while advancing knowledge and truth.
- xAI was launched in July 2023, releasing its AI interface “Grok” later that year, while X was purchased by Musk in 2022. Both companies share investors, including Saudi Arabia’s Kingdom Holding Co.
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Billionaire Elon Musk’s artificial intelligence company has acquired X, his social media platform formerly known as Twitter.
Musk said the deal is an all-stock transaction, valuing xAI at $80 billion and X at $33 billion after accounting for $12 billion in debt.
Musk made the announcement on X, saying xAI and the social media company’s futures are “intertwined.”
“Today, we officially take the step to combine the data, models, compute, distribution and talent,” he said. “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.”
According to a December 2024 news release, the two companies share several investors. They include Saudi Arabia’s Kingdom Holding Co., which owns $400 million worth of xAI shares.
The timeline
Musk launched xAI in July 2023 with the mission to “understand the universe.” Later that year, the company released “Grok,” its AI interface, to early access subscribers.
Formerly Twitter, Musk purchased the company in 2022 for $44 billion. He stripped the company of much of its personnel and installed Linda Yaccarino, formerly an executive at NBCUniversal, in 2023.
In addition to his role as senior advisor of the U.S. Department of Government Efficiency under President Donald Trump, Musk is also the co-founder of electric vehicle company Tesla, aerospace company SpaceX and others.
