Elon Musk’s xAI Acquires X in $33 Billion Deal
Elon Musk’s artificial intelligence startup xAI has acquired X, the social media platform formerly known as Twitter, in a $33 billion all-stock deal, the billionaire announced Friday.
The deal, which includes $12 billion in assumed debt, is valued at $45 billion and brings the combined valuation of the new entity to $80 billion, according to Musk.
Founded less than two years ago, xAI has rapidly grown in the competitive AI space, recently raising $6 billion in funding and reaching a valuation of $40 billion. The company launched its latest chatbot model, Grok-3, in February and operates what Musk claims is the world’s largest supercomputer cluster, based in Memphis, Tennessee.
The acquisition marks another major step in Musk’s tech empire, which includes Tesla, SpaceX, and his leadership of the Trump administration’s Department of Government Efficiency (DOGE).
Musk’s purchase of Twitter in 2022 for $44 billion rebranded the platform as X. This latest deal now brings it under the umbrella of xAI, though questions remain about investor approval and the financial details of the merger.
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