Elon Musk’s xAI Acquires X in Landmark $33 Billion Stock Deal

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Elon Musk’s artificial intelligence company, xAI, has officially acquired the tech mogul’s social media platform, X, in a groundbreaking all-stock transaction that values X at $33 billion. The merger establishes xAI with a valuation of $80 billion, further integrating Musk’s AI ambitions with his digital communications empire.

Musk, who also leads Tesla and SpaceX, announced the deal on X, highlighting its potential to merge xAI’s advanced artificial intelligence capabilities with X’s extensive global reach. He emphasized that the combined entity will drive innovation, providing smarter and more meaningful experiences while staying committed to the mission of truth-seeking and knowledge advancement.

A Strategic Move to Transform X

X, formerly known as Twitter, was acquired by Musk in 2022 for $44 billion, with the goal of reducing censorship and unlocking the platform’s untapped potential. Over the past two years, Musk has transformed X into what he describes as one of the most efficient companies globally, now serving over 600 million active users as a real-time information hub.

"This merger enables us to build a platform that not only reflects the world but actively accelerates human progress," Musk stated.

The integration of xAI into X is expected to enhance AI-driven interactions across the platform. xAI’s flagship AI chatbot, Grok, is already available to premium subscribers on X and aims to compete with OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude.



Musk’s AI Vision and Industry Rivalries

Musk co-founded OpenAI in 2015 alongside Sam Altman, Ilya Sutskever, and Greg Brockman but departed in 2018 following a failed attempt to gain majority control of the company. Since then, he has been vocal about his concerns regarding OpenAI’s direction and, in late 2024, took legal action to prevent the organization from transitioning into a for-profit entity.

Determined to build his own AI powerhouse, Musk founded xAI in March 2023 and recently secured $10 billion in funding, bringing the company’s valuation to $75 billion. The company’s latest AI model, Grok-3, was launched last month, further solidifying its position in the competitive AI landscape.

With this merger, Musk positions xAI and X as a powerful force in both AI development and digital communication, setting the stage for future advancements in artificial intelligence and social media technology.

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