Elon Musk Says xAI Acquired Social Media X For $33 Billion

Elon Musk announced on Friday that xAI, his AI startup, had acquired X, his social media platform previously generally known as Twitter, in an all-stock transaction combining two of Musk’s highest-profile corporations.

In a post on X, Musk wrote that the deal values xAI at $80 billion and X at $33 billion, giving the 2 corporations a complete worth of $113 billion. The brand new joint entity might be generally known as XAI Holdings, per Bloomberg.

The purpose of the acquisition is to construct a social media website with superior AI options. In different phrases, Musk claimed that xAI’s acquisition of X will permit xAI to carry superior “smarter, extra significant” AI experiences to X’s greater than 600 million lively customers.

Associated: Elon Musk’s Newest AI Chatbot Outperformed ChatGPT in One Key Area

“xAI and X’s futures are intertwined,” Musk wrote within the X submit, which has garnered greater than 55 million views. “Right this moment, we formally take the step to mix the info, fashions, compute, distribution and expertise.”

@xAI has acquired @X in an all-stock transaction. The mixture values xAI at $80 billion and X at $33 billion ($45B much less $12B debt).

Since its founding two years in the past, xAI has quickly turn out to be one of many main AI labs on this planet, constructing fashions and knowledge facilities at…

— Elon Musk (@elonmusk) March 28, 2025

xAI and X have been slowly integrating for years. In response to Bloomberg, xAI has reportedly used knowledge from X to develop its flagship product, an AI chatbot named Grok that units itself aside from rivals like ChatGPT and Gemini by incorporating sarcasm and humor. Premium X customers have been the first to access Grok on X in December 2023.

X and xAI are each personal corporations, so no particulars of the deal have been made public aside from Musk’s submit.

Associated: Elon Musk Releases the AI Model Behind Grok, a Competitor to OpenAI’s ChatGPT

X is a longtime social media firm with over 2,000 workers and an anticipated U.S. advert income of $1.31 billion this yr, a 17.5% yearly enhance. Musk purchased the corporate, then known as Twitter, for $44 billion in October 2022. Since then, Twitter has rebranded to X, applied cost cuts, and added new options, together with a subscription service.

Musk based xAI in March 2023 to grasp the universe, the company’s website says. The AI startup raised $6 billion in December and unveiled Grok 3 final month.

Grok is obtainable on web browsers and cell gadgets, however it’s also integrated into the X platform. X customers can use Grok to ask questions, brainstorm, and clear up issues by visiting x.com or the X app on iOS or Android and clicking the Grok icon within the navigation bar.