Elon Musk Sells X to His AI Company xAI in $33 Billion Deal

Elon Musk Sells Social Media Platform X to His AI Company xAI in $33 Billion Deal

Elon Musk has made another bold move in the tech industry, selling his social media platform, X, to his artificial intelligence company, xAI, in an all-stock deal valued at $33 billion. The billionaire entrepreneur announced the transaction on Friday, describing it as a strategic step to integrate AI-driven advancements with X’s extensive user base.

Both X and xAI are privately held companies, meaning they are not obligated to disclose their financial details publicly. However, Musk emphasized the potential benefits of the deal, stating that it will “unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”

The deal values xAI at $80 billion and X at $33 billion. Musk originally acquired the platform—then known as Twitter—for $44 billion in 2022. Since then, he has significantly reshaped the company, cutting staff, altering content moderation policies, and rebranding it as X.

Musk launched xAI in 2023, focusing on artificial intelligence development. With this latest merger, he aims to integrate AI more deeply into X, leveraging the platform’s vast data and user interactions to enhance AI capabilities.

“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution, and talent,” Musk posted on X. “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.”

It remains unclear how this deal will impact everyday X users. xAI already utilizes data from X posts to train its AI models, and premium X subscribers have access to its AI chatbot, Grok. Whether this merger will introduce new AI-driven features or alter user experiences significantly is yet to be seen.

Musk’s latest move reinforces his long-term vision of integrating artificial intelligence into digital communication platforms, potentially reshaping the future of online interactions.