Elon Musk announced that his artificial intelligence company, xAI, has officially acquired his social media platform, X (formerly Twitter), in an all-stock deal valued at xAI at $80 billion and X at $33 billion.
Musk, who originally acquired Twitter in 2022 for $44 billion, revealed the news via a post on X, calling the merger a step toward unifying “data, models, compute, distribution, and talent.”
“xAI and X’s futures are intertwined,” Musk wrote. “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.”
Why the Deal Matters
Both companies are privately held but share investors, infrastructure, and human capital. The consolidation could help safeguard investor interests following Musk’s high-cost acquisition of X and deepen the AI capabilities embedded in the platform—primarily through xAI’s chatbot, Grok, which already features prominently on X.
Industry experts see the move as a logical progression.
“It aligns with the current wave of heavy investments in AI, data centres, and compute infrastructure,” said Paolo Pescatore, analyst and founder of PP Foresight.
The acquisition cements X as a real-world training ground for xAI’s models and expands Musk’s influence in AI development and digital communication.
A Countermove to OpenAI?
The announcement comes amid escalating tensions between Musk and OpenAI, the company he co-founded in 2015 with CEO Sam Altman. Musk sued OpenAI last year, accusing the company of betraying its founding principles by shifting to a for-profit model.
Adding to the rivalry, the Wall Street Journal recently reported that OpenAI is finalizing a $40 billion funding round led by SoftBank, contingent on the company completing its corporate restructuring.
Musk reportedly made an unsolicited $97.4 billion bid to acquire OpenAI, which was rejected by Altman, who asserted the company is not for sale.
Political Power Moves
The business merger comes as Musk is expanding his political involvement. Now acting as a close advisor to former U.S. President Donald Trump, Musk is helping lead the administration’s efforts to cut federal spending.
Musk is in Wisconsin this weekend, where he has poured millions into a Supreme Court race. However, his actions sparked legal challenges—Wisconsin’s Attorney General filed a motion to block Musk from distributing $1 million in checks to voters ahead of the election.
What’s Next?
With this acquisition, Musk aims to reshape the future of social media, AI, and political discourse through a unified ecosystem. By merging xAI’s cutting-edge technology with X’s vast user data and engagement, he’s positioning the company as a powerhouse at the intersection of AI innovation and public influence.
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