Elon Musk's xAI Acquires Social Media Platform X in $45 Billion Deal

Elon Musk’s artificial intelligence company, xAI, has acquired the social media platform X, formerly known as Twitter, in an all-stock transaction valued at $45 billion, including $12 billion in debt. This merger aims to integrate xAI’s advanced AI capabilities with X’s extensive user base to deliver more intelligent and meaningful experiences to billions of users.

Musk announced the acquisition on X, stating that the combined entity would unlock immense potential by blending xAI’s expertise with X’s massive reach. The deal values xAI at $80 billion and X at $33 billion, reflecting the strategic importance of merging their data, models, computing resources, distribution networks, and talent.

Since its inception in 2023, xAI has rapidly emerged as a frontrunner in the AI industry, developing sophisticated models and establishing expansive data centres. Meanwhile, X has undergone significant transformation under Musk’s leadership, evolving into a highly efficient platform with over 600 million active users seeking real-time information.

The merger is expected to enhance xAI’s competitive edge, particularly through the integration of Grok, xAI’s chatbot, and the utilisation of ‘Colossus’, a powerful supercomputer. These advancements position the combined entity to compete more effectively with major industry players, such as OpenAI.

Musk’s strategic move to consolidate his ventures reflects a broader vision of integrating AI capabilities with social media platforms, aiming to accelerate human progress and innovation. This acquisition not only strengthens Musk’s position in the AI sector but also aligns with his mission to advance human knowledge and deliver smarter experiences to a global audience.