Elon Musk has sold X, the social platform formerly known as Twitter, to his artificial intelligence company, xAI. The acquisition was announced Friday in an all-stock transaction that places xAI’s valuation at a staggering $80 billion and X’s valuation at $33 billion.
The sale price for X is $1 billion more than the original $44 billion Musk paid to take Twitter private in 2022, accounting for $12 billion in debt. Musk now looks to redefine social media by combining it with advanced AI technology.
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent, Musk posted on X. 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.”
@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).
— Elon Musk (@elonmusk) March 28, 2025
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…
Musk’s vision aligns with his goal of developing what he previously described as an “everything app.” By integrating AI capabilities directly into X, the billionaire wants to create a new social media experience that transcends the traditional text, image, and video-sharing platform.
For everyday users of X, this merger could mean significant changes to how they interact with the platform. By leveraging xAI’s technological advances, X may soon include new features such as:
- AI-Powered Content Moderation: A more intelligent approach to detecting and eliminating harmful content.
- Personalized User Experiences: Enhanced algorithms for delivering hyper-relevant content tailored to individual preferences.
- Advanced Communication Tools: Potential integration of AI-driven chatbots, real-time translations, and voice interaction.
- Truth-Seeking Mechanisms: New tools aimed at combating misinformation and enhancing fact-based discourse.
Some experts view the acquisition as a bold move toward AI-integrated social media, while others worry about data privacy, ethical AI practices, and the potential for increased censorship.
Given that X already has a user base of hundreds of millions, combining it with xAI’s developing capabilities could catapult both companies into new realms of influence. But whether that influence will be used for good or otherwise remains to be seen.
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