Elon Musk has announced the sale of the social media platform X to his artificial intelligence firm, xAI, for an all-stock transaction valued at $33 billion (approximately $52 billion). This information was disclosed by Musk in a post shared on X. Both entities are privately owned, which means they are not obligated to publicly disclose their financial details.
Musk highlighted that this merger would enable an integration of xAI’s advanced AI capabilities with X’s extensive user base, thereby unlocking significant potential. According to Musk, this deal places xAI’s valuation at $126 billion while positioning X at $52 billion.
In a significant turn of events, Musk purchased Twitter—now X—for $69 billion back in 2022. Since then, he has made major changes including staffing reductions and alterations to policies concerning misinformation, hate speech, and user verification, leading to the platform’s rebranding as X. The establishment of xAI followed a year later.
Emphasising the synergy between the two companies, Musk remarked, “xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent.” He foresees that this collaboration could provide smarter and more impactful experiences for millions, all while remaining dedicated to their foundational mission of truth and knowledge advancement.
At this point, it remains uncertain whether this acquisition will result in any noticeable changes for current users of the platform. Notably, xAI has been utilizing data from posts on X to refine its AI models, with a select group of paid users already having access to its AI chatbot, Grok.