xAI Acquires Social Media Platform X In $33 Billion All-Stock Deal

Picture Credit: Andrew Harnik/Getty Images

Tech entrepreneur Elon Musk has confirmed that his artificial intelligence venture, xAI, has acquired the social media platform X in an all-stock deal worth $33 billion.

The deal pegs xAI’s valuation at $80 billion and X’s at $33 billion, factoring in $12 billion in debt. It aims to merge xAI’s cutting-edge artificial intelligence tools with the massive user base of X, which currently boasts over 600 million active users.

Musk originally acquired Twitter, now known as X, in 2022 for $44 billion.

Since then, the platform has undergone a series of structural changes. According to Musk, it has become one of the most streamlined companies globally, with strong growth potential.

Meanwhile, xAI, launched by Musk in March 2023, has quickly risen as a major player in the AI space.

The company builds AI models and data infrastructure at an extraordinary pace.

Musk, who also heads Tesla and SpaceX and advises US President Donald Trump, emphasized the significance of combining the strengths of both entities.

“Today, we officially take the step to combine the data, models, compute, distribution, and talent,” Musk remarked.

Elon Musk noted that the futures of xAI and X are closely connected. Their integration, he said, is aimed at creating more intelligent and purposeful user experiences.

According to him, this synergy will help shape a platform that not only mirrors the world but also drives human advancement forward.

Calling this move a starting point, Musk acknowledged the contributions of teams across both companies and praised their intense dedication.

X CEO Linda Yaccarino also expressed optimism, writing on the platform, “The future could not be brighter.”

Since Musk’s takeover of the company, X has seen various changes, including:

The removal of free verification,
A subscription-based model, and
A full rebranding from Twitter to X

Despite the overhaul, X’s financial trajectory has remained flat, with Fidelity recently valuing it at $12 billion as of December.

In contrast, xAI has experienced swift growth.

The company secured $6 billion in funding last December, raising its valuation to between $35 billion and $40 billion – up from $24 billion just months earlier.

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Mankrit Kaur