Musk’s xAI Acquires X in Billion-Dollar Merger to Bolster AI Ambitions

By Staff, Agencies

Elon Musk’s artificial intelligence firm, xAI, has acquired his social media platform X [formerly Twitter] in a $33 billion all-stock deal, marking another major move in his growing technological empire.

Announced on Saturday, the merger aims to integrate xAI’s AI model, Grok, more deeply with X’s vast user-generated data. Musk stated that the combination values xAI at $80 billion and X at $33 billion, excluding $12 billion in debt.

“This step officially unites data, models, computing, distribution, and talent,” Musk posted on X. However, the exact details of the merger, including investor compensation and regulatory implications, remain unclear.

Analysts view the acquisition as part of Musk’s broader consolidation strategy, positioning xAI as a stronger competitor in the rapidly evolving AI landscape. The move follows his unsuccessful bid to acquire OpenAI and ongoing legal battles over AI governance.

With xAI expanding its data center capacity and unveiling its latest chatbot, Grok-3, the integration with X is expected to enhance distribution and real-time AI capabilities. The deal also comes amid Musk’s increasing influence in Washington, where he oversees cost-cutting efforts in the federal government.

X, which Musk acquired for $44 billion in 2022, has seen a resurgence in advertiser interest, partially due to his growing political leverage. The seven banks that financed Musk’s purchase of X recently sold the company’s debt, benefiting from the AI sector’s surge in investor interest.

As Musk continues his push for AI dominance, the merger signals a deeper convergence of social media and artificial intelligence under his leadership.