Elon Musk, one of the wealthiest people in the world, has announced that his artificial intelligence company, xAI, will acquire the social media platform X (formerly Twitter) in an all-stock deal worth $33 billion.
Under the deal, xAI is valued at $80 billion, while X is valued at $33 billion after accounting for $12 billion in debt.
Musk explained that this acquisition will help unlock the full potential of xAI by combining its advanced AI technology with X’s extensive user base of over 600 million.
He emphasized that X has grown to become one of the world’s most influential companies in just two years, with plans to expand further.
xAI’s Remarkable Growth
Founded by Musk in March 2023, xAI has quickly emerged as one of the leading AI labs in the world. Musk noted that xAI is rapidly developing models and data centers.
Recently, the AI startup raised $6 billion from investors, bringing its valuation to $40 billion.
@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
X’s Financial Struggles
Musk purchased Twitter in 2022 for $44 billion and has implemented significant changes, including paid verification for blue ticks, a subscription model, and branding adjustments.
However, X’s financial performance has faced challenges. A report revealed that by December 2024, X’s value had dropped to $12 billion.
A Unique Blend of AI and Social Media
Musk believes that this acquisition will unite X and xAI, creating a platform that will not only reflect the world but also drive human progress.
He called it “just the beginning” and praised the efforts of both companies’ teams.
X’s CEO, Linda Yaccarino, also expressed excitement about the deal, stating, “The future is brighter than ever.”
