Elon Musk’s AI company, xAI, has acquired X (formerly Twitter) in an all-stock deal, valuing xAI at $80 billion and X at $33 billion after debt adjustments. Musk, who bought Twitter in 2022 for $44 billion, announced that the combination aims to blend xAI’s AI capabilities with X’s vast user base, enhancing potential for growth. With over 600 million active users, X is positioned as a leading digital platform. Musk emphasized that this union will not only improve user experience but also advance human progress, recognizing the dedication of both xAI and X teams in achieving this merger.
X, formerly known as Twitter and owned by Elon Musk, has been acquired by his artificial intelligence company xAI.
Musk announced this development in a post on his X account, indicating that the purchase was made through an all-stock deal, which values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
X, initially Twitter, was acquired by Musk in 2022 for approximately $44 billion and has faced a variety of controversies since then. Musk stated that the merger of X and xAI, whose “futures are intertwined,” will create significant opportunities by “combining xAI’s advanced AI capabilities and expertise with X’s extensive reach.”
Here’s the complete statement from Musk:
xAI has acquired X in an all-stock transaction. This merger values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
Since its inception two years ago, xAI has rapidly emerged as a leading AI research lab globally, creating models and data centers at an unmatched pace and scale.
X serves as the digital town square where over 600M active users seek real-time sources of truth. In the past two years, it has been transformed into one of the most efficient companies worldwide, positioning itself for scalable growth in the future.
The futures of xAI and X are interconnected. Today, we take an important step to merge our data, models, computing resources, distribution, and talent. This union will unleash significant potential by marrying xAI’s cutting-edge AI capabilities with X’s vast reach. The new entity will provide smarter, more meaningful experiences to billions, while remaining committed to our core mission of seeking truth and promoting knowledge. This will enable us to construct a platform that not only reflects reality but also actively propels human progress.
I want to acknowledge the unwavering dedication of all those at xAI and X who have brought us to this milestone. This is merely the beginning.
Thank you for your ongoing partnership and support.