TECH

Elon Musk merges X with xAI in a $33bn deal

Published

5 months ago

March 30, 2025

Elon Musk merges X with xAI in a $33bn deal

Elon Musk’s artificial intelligence venture, xAI, has acquired social media platform X (formerly Twitter) in a deal valuing the company at $33 billion.

The agreement will also allow xAI’s valuation—pegged at $80 billion—to be shared with X’s investors.

Musk, who leads Tesla, SpaceX, and now both xAI and X, announced the merger in a post on the platform, stating, “xAI and X’s futures are intertwined. Today, we officially combine data, models, computing power, distribution, and talent to accelerate AI development.”

The deal is expected to enhance xAI’s ability to train its AI chatbot, Grok, by leveraging X’s vast real-time data streams. However, key details—such as leadership integration and potential regulatory hurdles—remain undisclosed.

@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