Elon Musk’s AI startup, xAI, has acquired his social media platform X (formerly Twitter) in an all-stock deal, valuing xAI at $80 billion and X at $33 billion after accounting for $12 billion in debt. Musk described the companies’ futures as “intertwined,” emphasizing their combined resources in data and talent. This acquisition solidifies X’s integration into xAI, which Musk founded in 2023 to compete with OpenAI.
Musk originally bought X for $44 billion in 2022, but its valuation has fluctuated significantly. Recently, X’s worth has risen, partly due to its influence, with over 600 million active users. xAI has attracted top AI talent and aims to catch up with industry leaders, having released the competitive Grok 3 model.
Musk is also trying to challenge OpenAI, the company he co-founded, by opposing its for-profit transition and submitting a $97 billion takeover bid, which was rejected. xAI benefits from its access to X, which provides valuable training data and a substantial user base. With this acquisition, xAI and X are effectively one, suggesting that X’s true value may lie in supporting Musk’s broader AI ambitions.
