Elon Musk’s artificial intelligence venture, xAI, has acquired his social media platform X, formerly known as Twitter, in an all-stock transaction. This deal values xAI at $80 billion and X at $33 billion, with the latter’s total valuation reaching $45 billion when including $12 billion in debt.
Since its inception two years ago, xAI has emerged as a leading AI lab, rapidly expanding its model development and data center infrastructure. Meanwhile, X has transformed into a highly efficient digital hub, attracting over 600 million active users seeking real-time information.
The acquisition marks a strategic integration of xAI’s advanced AI capabilities with X’s vast user base. Musk emphasized that the futures of both entities are deeply intertwined, and this merger will unlock substantial potential by combining their data, models, computing resources, distribution channels, and talent. The combined entity aims to provide more intelligent and meaningful experiences to billions, while remaining committed to its mission of pursuing truth and advancing knowledge. This integration is expected to not only reflect the world but also actively accelerate human progress.
This move aligns with Musk’s broader strategy of consolidating his ventures to enhance their growth potential. The acquisition could also safeguard investors who supported Musk’s purchase of Twitter in 2022, ensuring they do not incur significant losses. As both xAI and X are privately owned and share major investors, the deal likely involves a stock exchange, with X investors receiving shares in xAI.
