Elon Musk sells social media site X to his own AI company

Elon Musk sells X to xAI in a groundbreaking $33 billion (€30.5 billion) all-stock deal, merging the social media platform formerly known as Twitter with his artificial intelligence company. The acquisition, announced on Friday, aims to combine xAI’s cutting-edge AI technology with X’s vast user base for smarter digital experiences.

Both X and xAI are privately held, keeping financial details undisclosed. Musk, who also leads Tesla and SpaceX, stated on X that this move will “unlock immense potential” by integrating AI expertise with social media reach. “xAI and X’s futures are intertwined,” he posted, highlighting plans to merge data, models, and talent.

The deal values xAI at 80 billion(€74billion) and X at 80 billion(€74billion) and X at 33 billion (€30.5 billion). Musk originally bought Twitter for $44 billion in 2022, rebranding it as X after overhauling policies and staff.

xAI, launched in 2023, has quickly become a top AI lab, developing advanced models and expanding its supercomputer, ‘Colossus,’ to compete with rivals like OpenAI. While X users may not see immediate changes, xAI already trains its models on X data, and premium subscribers access its AI chatbot, Grok.

Musk emphasized the combined company’s mission to deliver “smarter, more meaningful experiences” while advancing knowledge and truth-seeking.