Elon Musk says xAI acquired X
The AI startup of Elon Musk, Xai, has taken over his social media platform X, previously known as Twitter, in an All-Stock deal, he announced in one Post on X Friday.
“Xai has taken X in a transaction with a whole shares,” said Musk. “The combination appreciates $ 80 billion and X for $ 33 billion ($ 45 billion less $ 12 billion debt).”
Musk then described the futures of the two companies as ‘intertwined’. He added: “Today we are officially taking the step to combine the data, models, calculation, distribution and talent.”
The acquisition places X – the very influential social media platform Musk bought in 2022 under its former name, Twitter – firmly under the umbrella of Musk’s AI Startup, which he founded in 2023 to compete with OpenAi. While Xai’s products, including his AI Chatbot Grok, were tightly integrated into the X-platform before this deal, Friday’s acquisition further combines two of the most controversial companies in Musk.
MUSK – who also leads Tesla, SpaceX and Neuralink – notes in his position that this Deal X appreciates $ 33 billion (lowered from a operating value of $ 45 billion due to $ 12 billion debts of the company). Musk originally bought X for $ 44 billion in October 2022 and took it private. However, the appreciation has started dramatically in recent years. At a certain point, Fidelity X appreciated less than $ 10 billion.
In the months since President Donald Trump’s inauguration – for whom Musk led aggressive campaign and for whom Musk now serves as a special adviser who leads doge – the valuation of X has risen largely because investors now have the platform now. Musk said in his post on Friday that X has more than 600 million active users.
Musk launched Xai in 2023 and has since strengthened the startup with leading AI researchers from Google DeepMind, Microsoft and OpenAi, and has built up the huge AI data centers to catch up with other frontier AI developers. To feed these efforts, Musk has conducted a historical fundraising campaign, including a $ 6 billion financing round in December that appreciated the startup to $ 45 billion. According to Musk, the appreciation of Xai is now even higher, at $ 80 billion.
Xai has largely been successful in his crazy dashboard to catch up with OpenAi, Google DeepMind and Anthropic. In February the startup 3 released Grok 3, a frontier AI model that is competitive with the leading AI models in the industry about benchmarks that measure mathematics, science and coding.
But the successes of Xai did not prevent Musk from interfering with OpenAi, a startup that he founded together with Sam Altman. Musk is currently trying to cross the transition from OpenAi, it must complete it to secure future financing-more than one way. The billionary owner of Xai has made the transition from OpenAi’s for-profit the center of his lawsuit against OpenAi. Musk also submitted a takeover bid of $ 97 billion for the Altman startup in February. The OpenAi sign immediately rejected the idea, but it may already have increased the market price for the OpenAI assets.
One of the most important advantages that Xai has compared to OpenAI and other startups is access to X. The large amount of posts that X has collected over the years gives Xai a significant advantage in the race for AI training data. Furthermore, X Musk’s AI Startup gives a huge consumer app to reach users.
Musk has a history of fading the lines between his many companies that have previously brought him into legal problems. With Xai’s acquisition of X, the two are now effectively one – and the move suggests that the actual value of X can be in promoting Musk’s wider AI ambitions.
