Elon Musk’s artificial intelligence company, xAI, has acquired his social media platform X, formerly known as Twitter, in a deal valued at $33 billion (€30.5 billion).
The move consolidates Musk’s AI and social media ventures, positioning xAI for broader expansion in the competitive AI market.
Announcing the acquisition in a post on X, Musk stated that the transaction values xAI at $80 billion and X at $33 billion, after accounting for debt.
“xAI and X’s futures are intertwined,” Musk wrote. “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
While the deal’s financial details remain undisclosed due to both companies being privately held, it remains unclear how the acquisition will impact X’s users.
Musk originally acquired Twitter for $44 billion in 2022, later rebranding it as X and implementing sweeping changes, including mass layoffs, policy shifts, and a revised content moderation approach. These changes triggered a significant advertiser exodus, leading to a sharp decline in revenue.
Musk founded xAI in 2023 to compete with major AI players, including OpenAI and China’s DeepSeek. In February, xAI launched Grok-3, its latest chatbot model, and has been ramping up its data center capacity to enhance AI development.
Musk also made a $97.4 billion bid to acquire OpenAI earlier this year, but the offer was rejected. Despite this, he continues to expand his influence in AI, social media, and beyond.
In addition to leading Tesla and SpaceX, Musk has gained a growing presence in Washington. He now heads the administration’s cost-cutting efforts as chief of the Department of Government Efficiency, or DOGE.
