San Francisco: Elon Musk announced that he has sold social media platform X to his own artificial intelligence startup, xAI, in an all-stock transaction valued at USD 33 billion. Since both companies are privately held, they are not subject to public disclosure requirements regarding their financial details.
“The move will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach,” Musk stated in a post on X. He further claimed that xAI is currently valued at USD 80 billion, while X has been priced at USD 33 billion for this transaction.
Musk, who is also the CEO of SpaceX and Tesla, acquired the platform formerly known as Twitter for USD 44 billion in 2022. Following the acquisition, he implemented sweeping changes, including mass layoffs, modifications to content moderation policies, and a rebranding to X.
A year later, Musk launched xAI with the goal of advancing artificial intelligence research. On Friday, he emphasized the deep interconnection between X and xAI, stating, “The destinies of X and AI are interwoven. We formally begin the process of integrating the data, models, computation, distribution, and talent today.”
Musk asserted that the merger would significantly enhance user experience, saying, “Billions of people will receive smarter, more meaningful experiences from the combined company while adhering to our core mission of pursuing knowledge and the truth.”
Industry analysts view this move as a strategic step in Musk’s broader AI ambitions, positioning xAI as a dominant player in artificial intelligence while leveraging X’s vast user base for data and distribution.
