Elon Musk’s AI company, xAI, has acquired his social media platform X in a significant all-stock deal. Musk’s xAI Acquires X in $45 Billion Deal to Merge AI and Social Media. Musk also stated that this combination would enhance user experience and advance knowledge.
Elon Musk’s artificial intelligence company, xAI, has acquired the social media platform X, formerly known as Twitter, in an all-stock deal valued at $45 billion. This transaction values X at $33 billion, including $12 billion in debt, and xAI at $80 billion.
Musk highlighted the strategic importance of merging the data, models, and talent from both companies to unlock significant potential. He stated, “xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution, and talent.”
This move aims to integrate xAI’s advanced artificial intelligence capabilities with X’s extensive user base. It will also enhance user experiences and drive innovation. XAI’s chatbot, Grok, which was already integrated into X, is expected to benefit from this closer collaboration.
New Era Or Not?
Musk’s acquisition of Twitter in 2022 for $44 billion led to significant changes, including rebranding it as X and restructuring its workforce. The current merger is seen as a strategic effort to strengthen xAI’s position in the competitive artificial intelligence sector, particularly against rivals like OpenAI and DeepSeek.
Investors, including Saudi Arabian Prince Alwaleed bin Talal, who holds significant stakes in both companies, have welcomed the merger. Prince Alwaleed noted that the value of their investments is expected to reach between $4 and $5 billion as a result of the deal.
Representatives for X and xAI did not immediately respond to requests for comment. Much of the deal’s specifics remain unclear. Such as how X’s leaders would be integrated into the new firm or whether there would be regulatory scrutiny. The business manoeuvring is happening as Mr Musk has taken more of an interest in politics, now serving as President Donald Trump’s right-hand.
This consolidation reflects Musk’s vision of creating a more integrated and intelligent platform. It will also combine social media with advanced artificial intelligence to deliver enhanced services to users worldwide.
