Elon Musk’s AI company, xAI, has acquired X, according to a post shared by Musk. Beyond their similar names and ownership, the companies are already linked through xAI’s chatbot Grok, which is integrated into X.
X was bought by xAI in an all-stock transaction. “The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt),” Musk writes. “xAI and X’s futures are intertwined.” The plan involves merging “data, models, compute, distribution, and talent,” leveraging X’s platform to disseminate “xAI’s advanced AI capabilities.” While the post provides limited details, the rationale could be as much financial as it is practical.
@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
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…
— Elon Musk (@elonmusk) March 28, 2025
X, previously known as Twitter, was acquired by Musk in 2022 for $43 billion. Like many top AI firms, xAI has been raising capital as quickly as possible. Merging the two companies, in addition to the potential benefits social media posts could provide for AI training, helps alleviate some of the debt Musk incurred by taking Twitter private. The billionaire previously executed a similar strategy in 2016 with Tesla, when the automaker merged with SolarCity for $2.6 billion.
This article originally appeared on Engadget at https://www.engadget.com/social-media/xai-elon-musks-ai-company-just-purchased-x-elon-musks-social-media-company-221503759.html?src=rss
