Elon Musk Merges xAI with Social Media Platform X in Multi-Billion Dollar Deal
SAN FRANCISCO, March 29 — Tech billionaire Elon Musk announced Friday that his artificial intelligence startup xAI has merged with X, the social media platform formerly known as Twitter, in an all-stock transaction that further consolidates his expanding tech empire.
“xAI has acquired X in an all-stock transaction,” Musk posted on the platform. The deal values xAI at $80 billion and X at $33 billion — a figure adjusted to $45 billion minus $12 billion in debt.
Musk said the merger marks a strategic step to integrate the two companies’ resources, combining “data, models, compute, distribution and talent” under one umbrella. “xAI and X’s futures are intertwined,” he noted, adding that the fusion is expected to “unlock immense potential by blending xAI’s advanced AI capabilities with X’s massive reach.”
X CEO Linda Yaccarino echoed the optimism, writing, “The future could not be brighter” in a post following the announcement.
Musk originally acquired Twitter for $44 billion in late 2022 and rebranded it as X, envisioning it as an “everything app.” He launched xAI in 2023 with the mission to “understand the true nature of the universe,” positioning the company as a major player in the AI race.
xAI has since developed advanced AI tools, including the Grok chatbot, which is integrated into the X platform. The startup was valued at around $50 billion during a funding round last year, with Bloomberg reporting more recently that it was in talks to raise new capital at a $75 billion valuation.
The merger signals Musk’s continued push to build a unified ecosystem combining AI innovation, content, and communication.
— Agency
