Elon Musk announces sale of X to AI company xAI for $33 billion
Elon Musk has confirmed that his artificial intelligence company, xAI, has acquired the social media platform X in a $33 billion all-stock deal, Kazinform News Agency reports.
Musk announced the acquisition on his X account, highlighting the valuation of both companies in the transaction.
“xAI has acquired X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt),” he wrote.
@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
— Elon Musk (@elonmusk) March 28, 2025
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…
He described the acquisition as a strategic move to merge AI technology with a broad-reaching platform.
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,” Musk explained.
According to Musk, the merger aims to create a smarter, more impactful platform while advancing AI-driven innovation.
“This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. (...) This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress,” he stated.
Back in 2022, Musk acquired Twitter for $44 billion, rebranding it as X and making significant changes to the platform. While he has not announced immediate changes following the xAI acquisition, Musk claims the combined platform will “deliver smarter, more meaningful experiences,” valuing it at $80 billion.
Earlier, it was reported that Elon Musk, founder of xAI, officially unveiled Grok 3 — a new flagship artificial intelligence model, claiming it to be the “smartest AI on Earth”.
