Elon Musk Announces That xAI has Acquired X
Elon Musk announced Friday night that his artificial intelligence company, xAI, has acquired the social media platform X.
The acquisition was completed in an all-stock transaction, and Musk revealed that the combined value of the two companies places xAI at $80 billion and X at $33 billion, after accounting for X’s $12 billion debt.
@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
Founded two years ago, xAI has rapidly emerged as one of the leading AI labs in the world, developing advanced models and data centers at an extraordinary pace. This acquisition marks a significant moment in the evolution of both companies, blending their strengths to position them for future growth.
Musk emphasized that X, which boasts over 600 million active users, has transformed into a “digital town square” where users can access real-time information. Under his leadership, X has become one of the most efficient companies globally, paving the way for scalable future growth.
He stated that the futures of xAI and X are now intertwined. By combining xAI’s AI capabilities with X’s vast user base, Musk sees an opportunity to unlock immense potential.
This merger integrates data, models, computing resources, distribution channels, and talent, which will enable the two companies to offer smarter, more meaningful experiences to users, per the Post Millennial.
Musk believes that this combination will help accelerate human progress while staying true to the mission of seeking truth and expanding knowledge.
The merger will further strengthen X’s platform, allowing it to evolve into something that not only reflects the world but actively fosters innovation. Musk sees this as just the beginning, suggesting that there are more ambitious plans for the combined company in the future.
Musk first became involved with X in 2022 when he acquired Twitter. The acquisition of X by xAI represents another major development in Musk’s broader vision of integrating artificial intelligence across his various business ventures.
In 2023, xAI launched its AI chatbot, Grok, initially available to premium X users. The chatbot quickly gained popularity and became a key feature on the platform. Within a year, Grok was made available to all users, marking a significant milestone in the integration of AI within social media.
Earlier this year, xAI introduced Grok 3 Beta, a more advanced version of the chatbot. Musk described this model as the company’s most advanced yet, offering superior reasoning and extensive pretraining knowledge. The beta version of Grok 3 is expected to enhance the user experience on X by leveraging powerful AI models.
Musk’s announcement of xAI acquiring X further cements his ambition to reshape the digital landscape. By merging an AI powerhouse with one of the largest social media platforms, Musk is positioning himself at the forefront of both AI innovation and social media evolution.
The acquisition also marks a significant consolidation of Musk’s influence in the tech industry. His efforts to integrate AI into X could transform how people engage with social media, making it smarter and more intuitive while maintaining the platform’s core focus on real-time information sharing.
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