Elon Musk Sells X to xAI in $33 Billion All-Stock Deal

Elon Musk has transferred ownership of social media platform X to his artificial intelligence startup, xAI, in a $33 billion all-stock deal, he announced on Friday.

Since both companies are privately owned, they are not obligated to disclose financial details publicly.

Musk stated on X that this move aims to “unlock immense potential” by integrating xAI’s advanced AI capabilities with X’s extensive user base. The deal reportedly values xAI at $80 billion and X at $33 billion.

Musk, who leads Tesla and SpaceX and serves as an advisor to former President Donald Trump, originally acquired Twitter for $44 billion in 2022. Following the purchase, he implemented significant staffing cuts, altered content moderation policies, and rebranded the platform as X.

He established xAI a year later.

“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach,” Musk wrote on X. “The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.”

It’s unclear if the change will have any effect on X users because xAI currently trains its AI models using data from X user postings, and Grok, its AI chatbot, is available to paying X users.