Elon Musk’s xAI Acquires X in $33 Billion All-Stock Deal

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Elon Musk has sold the social media platform X to his artificial intelligence firm, xAI, for $33 billion in an all-stock transaction, the entrepreneur revealed on Friday.

Both X and xAI are privately owned, exempting them from public financial disclosures. Musk, who acquired X—then Twitter—for $44 billion in 2022 before reshaping its workforce and policies, hailed the deal as a game-changer. In an X post, he stated the merger “will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.” The transaction values xAI at $80 billion and X at $33 billion.

Musk, also CEO of Tesla and SpaceX and an advisor to President Donald Trump, founded xAI in 2023. His 2022 X takeover saw staff cuts, shifts in hate speech and verification rules, and a rebrand from Twitter to X. Now, he says, the two companies’ futures are aligned.
“xAI and X’s futures are intertwined,” Musk posted. “This combination unites data, models, compute, distribution, and talent to deliver smarter, more meaningful experiences to billions while advancing our mission of seeking truth and knowledge.”

The deal’s impact on X users remains uncertain. xAI already leverages X posts to train its AI models, and premium X subscribers can use its chatbot, Grok. Further details on operational changes were not disclosed.