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Elon Musk announced that X, f.k.a. Twitter, has been acquired by his own xAI in an all-stock transaction.
The owner of both companies revealed on X that the merger now values xAI, the AI company that developed Grok, at $80 billion USD, while X is currently valued at $33 billion USD after Musk purchased it for $44 billion USD in April 2022. “xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,” he wrote.
Musk continued, “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. 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. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”
As Emerge reports, however, Fidelity Investments’ valuation of its own X stake in October 2024 estimated the platform’s overall worth at around $9.4 billion USD. The company’s valuation did increase by the end of the year, but was still down 77% from the original purchase price. Details surrounding Musk’s $33 billion USD valuation were not revealed. The publication adds that while the acquisition sees Musk selling X to himself, its merger with xAI “could give the company access to new investors, improved valuation, and a narrative pivot away from Twitter’s chaotic takeover” — especially with its current $12 billion USD debt.
@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).
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…
— Elon Musk (@elonmusk) March 28, 2025
