Elon Musk’s AI Firm xAI Acquires X in $33 Billion Deal

• Mar 29, 2025

Elon Musk’s artificial intelligence company, xAI, has officially acquired X, the social media platform formerly known as Twitter, for $33 billion. Musk announced the deal on Friday through his X account, stating that the acquisition will merge the platform’s extensive data resources with xAI’s advanced AI models.

“xAI has acquired X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45 billion less $12 billion in debt),” Musk said.

Since its launch two years ago, xAI has become a leading artificial intelligence lab, building models and data centers at a rapid pace. Musk emphasized that X, which has over 600 million active users, plays a crucial role as a digital town square, providing real-time information and discussions. He added that the platform has transformed into one of the most efficient companies in the world, positioning it for future growth.

Musk believes that combining xAI’s AI capabilities with X’s reach will unlock new opportunities. “xAI and X’s futures are intertwined. Today, we officially take the step to combine data, models, compute, distribution, and talent,” he said.

According to Musk, this move will allow the new entity to deliver smarter, more meaningful experiences to billions of people while maintaining its mission of seeking truth and advancing knowledge. He envisions a platform that not only reflects the world but also accelerates human progress.

Musk originally purchased Twitter in October 2022 for $44 billion and later rebranded it as X. The social media platform has undergone major changes under his leadership, including a shift in business strategy and new AI-driven features.

The acquisition comes amid ongoing legal challenges for Musk. In January, the U.S. Securities and Exchange Commission (SEC) sued him over alleged violations related to the original Twitter purchase. However, Musk remains focused on his long-term vision, which now involves integrating AI technology deeply into X’s operations.

The impact of this merger remains to be seen, but it marks another significant step in Musk’s push to reshape both social media and artificial intelligence.