‘Futures Are Intertwined’: Elon Musk xAI Buys His Own Social Media Platform, X, in a $33 Billion Deal
The deal values xAI at $80 billion and X at $33 billion.
Key Takeaways
- Elon Musk stated in a post on X on Friday that xAI had acquired X for $33 billion.
- Musk said that the move would officially combine the data and talent of the two companies.
- X and xAI have a combined value of $113 billion.
Elon Musk on Friday that xAI, his AI startup, had acquired X, his social media platform formerly known as Twitter, in an all-stock transaction combining two of Musk’s highest-profile companies.
In a , Musk wrote that the deal values xAI at $80 billion and X at $33 billion, giving the two companies a total value of $113 billion. The new joint entity will be known as XAI Holdings, per .
The goal of the acquisition is to build a social media site with advanced AI features. In other words, Musk claimed that xAI’s acquisition of X will allow xAI to bring advanced “smarter, more meaningful” AI experiences to X’s more than 600 million active users.
Related: Elon Musk’s Newest AI Chatbot Outperformed ChatGPT in One Key Area
“xAI and X’s futures are intertwined,” Musk wrote in the X post, which has garnered more than 55 million views. “Today, we officially take the step to combine the data, models, compute, distribution and talent.”
has acquired in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
— Elon Musk (@elonmusk)
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…
xAI and X have been slowly integrating for years. According to Bloomberg, xAI has reportedly used data from X to develop its flagship product, an AI chatbot named Grok that sets itself apart from competitors like ChatGPT and Gemini by incorporating sarcasm and humor. Premium X users were the on X in December 2023.
X and xAI are both private companies, so no details of the deal were made public except for Musk’s post.
Related: Elon Musk Releases the AI Model Behind Grok, a Competitor to OpenAI’s ChatGPT
X is an established social media company with employees and an expected U.S. ad revenue of $1.31 billion this year, a 17.5% yearly increase. Musk bought the company, then called Twitter, for . Since then, Twitter has , implemented , and added new features, including .
Musk founded xAI in March 2023 to understand the universe, the says. The AI startup raised in December and unveiled Grok 3 last month.
Grok is available on and mobile devices, but it is also . X users can use Grok to ask questions, brainstorm, and solve problems by visiting or the X app on iOS or Android and clicking the Grok icon in the navigation bar.
Key Takeaways
- Elon Musk stated in a post on X on Friday that xAI had acquired X for $33 billion.
- Musk said that the move would officially combine the data and talent of the two companies.
- X and xAI have a combined value of $113 billion.
Elon Musk on Friday that xAI, his AI startup, had acquired X, his social media platform formerly known as Twitter, in an all-stock transaction combining two of Musk’s highest-profile companies.
In a , Musk wrote that the deal values xAI at $80 billion and X at $33 billion, giving the two companies a total value of $113 billion. The new joint entity will be known as XAI Holdings, per .
The goal of the acquisition is to build a social media site with advanced AI features. In other words, Musk claimed that xAI’s acquisition of X will allow xAI to bring advanced “smarter, more meaningful” AI experiences to X’s more than 600 million active users.
