- By Priyanka Koul
- Sat, 29 Mar 2025 09:32 AM (IST)
- Source:JND
Elon Musk has announced that his xAI artificial intelligence company has acquired the social media platform X (formerly Twitter) in an all-stock deal worth $33 billion. The billionaire revealed the news on March 28, highlighting that the merger will combine xAI’s advanced artificial intelligence with X’s massive user base to unlock new possibilities.
Details of the xAI-X Merger
The merger involves an all-stock transaction, meaning no cash was exchanged. While both xAI and X are privately held companies and not required to disclose financial details, Musk confirmed that the deal values xAI at $80 billion and X at $33 billion.
@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).
— Elon Musk (@elonmusk) March 28, 2025
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…
Musk shared on X that integrating the two companies will bring together their data, models, computing power, distribution capabilities, and talent. This collaboration aims to deliver smarter, more meaningful user experiences while advancing the core mission of seeking truth and spreading knowledge.
Musk’s Vision: AI Meets Social Media
Musk believes that combining xAI’s advanced AI capabilities with X’s extensive reach will unlock “immense potential” and transform how people interact with digital platforms. According to him, the merged company will provide more intelligent and personalized experiences to billions of users worldwide.
He stated, “xAI and X’s futures are intertwined. This combination will drive innovation by blending AI expertise with a powerful social media platform.”
From Twitter to X: Musk’s Transformation Journey
Musk acquired Twitter in 2022 for $44 billion, subsequently rebranding it as X. Since then, he has made major changes, including:
- Overhauling staff and reducing the workforce.
- Changing content moderation policies on hate speech and misinformation.
- Revising user verification systems and introducing new paid features.
One year after purchasing X, Musk launched xAI—a company focused on developing cutting-edge artificial intelligence. With this merger, Musk is aiming to integrate advanced AI technology directly into the social media platform.