MUSK’S XAI BUYS MUSK’S X SOCIAL MEDIA PLATFORM FOR $33 BILLION – The all-stock deal consolidates two of Musk’s multiple portfolio companies
Elon Musk’s xAI artificial intelligence firm has acquired Musk’s X, the social media outfit formerly known as Twitter for $33 billion.
The all-stock deal consolidates two of Musk’s multiple portfolio companies, which also include automaker Tesla and SpaceX, and potentially eases the billionaire’s ability to train his AI model known as Grok. Including $12 billion in debt, the deal is valued at $45 billion.
Musk announced the transaction in a post on X, saying that the combined entity would be valued at $80 billion. “xAI and X’s futures are intertwined,” wrote Musk. “Today, we officially take the step to combine the data, models, compute, distribution and talent.” Some of the deal’s specifics were not yet clear, such as whether investors approved the transaction or how investors may be compensated.
His xAI startup was launched less than two years ago and recently raised $6 billion in a funding round that valued the company at $40 billion, sources have reported.
xAI introduced Grok-3, the latest iteration of its chatbot, in February, as it tries to compete with Chinese AI firm DeepSeek and Microsoft-backed OpenAI.
Musk clinched a deal in 2022 to buy X for $44 billion, ending its run as a public company since its 2013 initial public offering, declaring that “the bird is freed” once the acquisition closed.
