Elon Musk’s xAI Acquires X in $45 Billion Deal

Elon Musk’s artificial intelligence company, xAI, has acquired the social media platform X (formerly known as Twitter) in an all-stock transaction valued at $45 billion, including $12 billion in debt. This valuation places X slightly above the $44 billion price Musk paid to privatize it in October 2022.​ Investopedia, Instagram

Musk emphasized the strategic importance of this merger, stating that xAI and X’s futures are “intertwined.” He highlighted plans to integrate the data, models, computing power, distribution, and talent from both companies to unlock significant potential. ​The Irish Times

The acquisition is expected to enhance xAI’s competitive edge in the AI sector, particularly through the integration of Grok, xAI’s chatbot, with X’s extensive user base. This synergy aims to create a platform that accelerates human progress by combining advanced AI technologies with broad social media reach. ​Times New York, Post Financial Times

Financially, the deal values xAI at $80 billion and X at $33 billion, inclusive of debt. Musk plans to establish a new holding company in Texas to oversee the combined operations, retaining control over X’s existing debt. New York Post

This move follows Musk’s 2023 founding of xAI with the goal of challenging established AI entities like OpenAI. Since its inception, xAI has launched its own chatbot, Grok, and expanded its data center capacities to support advanced AI model training. ​Financial Times