Elon Musk’s artificial intelligence startup, xAI, has officially acquired his social media platform X, formerly known as Twitter, in an all-stock transaction, he announced on X Friday.
“xAI has acquired X in an all-stock transaction,” Musk stated. “The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).”
Musk emphasized that the two companies’ futures are now “intertwined,” noting that the acquisition will integrate data, AI models, computing power, distribution, and talent across both businesses.
This acquisition firmly places X, the influential social media platform Musk purchased in 2022, under the control of xAI. Musk launched xAI in 2023 to compete with industry giants like OpenAI, and the company has quickly grown into a formidable force in artificial intelligence.
While xAI’s AI chatbot, Grok, was already integrated into X’s platform, this deal strengthens their connection. According to reports from The Wall Street Journal, shares of X and xAI will now be exchanged for shares in a newly created holding company, xAI Holdings Corp. Executives at both firms reportedly saw the merger as a way to attract more funding.
Musk originally acquired X (then Twitter) for $44 billion in October 2022 and took it private. However, its valuation has fluctuated significantly since then. At one point, Fidelity valued X at under $10 billion. Musk’s post on Friday places X’s current valuation at $33 billion, factoring in $12 billion in debt.
Since the inauguration of President Donald Trump, X’s value has risen as investors see it as an increasingly influential platform. Musk also revealed that X now has over 600 million active users.
Since its launch, xAI has rapidly scaled up, hiring top AI researchers from Google DeepMind, Microsoft, and OpenAI while building massive AI data centers to compete with leading AI developers. In December 2024, xAI secured $6 billion in funding, valuing the company at $45 billion. Musk now claims xAI’s valuation has climbed to $80 billion.
In February 2025, xAI released Grok 3, a cutting-edge AI model that rivals leading competitors in math, science, and coding benchmarks. The startup is racing to keep pace with OpenAI, Google DeepMind, and Anthropic.
Despite xAI’s rapid progress, Musk continues to challenge OpenAI, a company he co-founded with Sam Altman. He has opposed OpenAI’s transition to a for-profit model, arguing that it compromises its original mission.
In February, Musk attempted to acquire OpenAI with a $97 billion takeover bid, but the company’s board swiftly rejected the offer. However, his bid may have influenced the perceived market value of OpenAI’s assets.
One of xAI’s biggest advantages over other AI firms is its access to X. The vast database of social media posts provides a valuable resource for AI training data. Additionally, X offers xAI a built-in platform to deploy and test AI-driven consumer applications.
Musk has a history of integrating his various companies, sometimes leading to legal scrutiny. With this acquisition, xAI and X are now effectively one entity, further aligning Musk’s AI ambitions with his social media empire.
