Musk announces xAI has acquired X in an all-stock transaction – site valued at $33B

xAI, the company that created the artificial intelligence bot known as Grok, is now the proud owner of X, the social media platform.

Elon Musk, the owner of both xAI and X, announced the change in ownership in a tweet published Friday.

@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

In the tweet, Musk noted how both xAI and X are the best at what they individually do.

“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 unprecedented speed and scale,” he wrote.

“X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth,” he added.

Musk went on to celebrate how, going forward, both xAI and X’s futures will be “intertwined.”

“Today, we officially take the step to combine the data, models, compute, distribution and talent,” he explained. “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,” he continued.

X CEO Linda Yaccarino was pleased by the announcement.

.@X + @xAI
The future could not be brighter ✨ https://t.co/GoJE99KxxI

— Linda Yaccarino (@lindayaX) March 28, 2025

Launched less than two years ago, xAI has been competing with OpenAI, another AI startup that Musk reportedly co-founded in 2015.

“He later left OpenAI and has recently been involved in a public relations and legal spat with the company and CEO Sam Altman over the direction that it’s taken,” according to CNBC.

According to a report published in The Verge back in January, xAI has been “quietly taking over” at X for awhile now.

“xAI’s takeover of the platform once known as Twitter is so unmistakable that even its branding has crept into X’s most visible real estate, with ‘xAI Grok’ now commanding prominent placement in the app’s main toolbar — a striking symbol of how Musk’s AI ambitions have come to dominate the social network,” the site notes.

xAI employee Eric Zelikman recently mocked xAI and X’s tightly knit relationship by publishing a parody image showing an X timeline overrun with xAI’s logo.

Look:

could use a bit more xAI tbh https://t.co/KlHiajFoF7 pic.twitter.com/NwSIvkogJO

— Eric Zelikman (@ericzelikman) January 3, 2025

Prior to xAI and X’s just-announced merger, all xAI staffers were also X employees, but not all X employees were xAI staffers.

“[O]n top of access to the code base, [xAI staffers] have company laptops from X and appear in the platform’s Workday HR software as X employees,” The Verge notes.

Financially, xAI and X are on two entirely different tiers, with xAI seeing “meteoric growth” while X “has struggled to maintain value.”

“Its most recent employee stock grants in October 2023 valued the company at $19 billion, less than half of Musk’s $44 billion purchase price,” The Verge notes.

“X employees, who received RSUs [restricted stock units] at $45 per share, have been waiting over a year for new stock grants while watching their sister company’s valuation soar. During xAI’s first funding round, Musk said investors in X would own 25 percent of xAI, but that hasn’t materialized for X employees who own X stock,” the reporting continues.

Sadly, xAI’s incorporation into X hasn’t always gone so swell. After X launched Grok-powered “Stories” last year, it began producing nonsensical, ridiculous slop.

“[I]t produced headlines that claimed Vice President Kamala Harris was shot after the attempted assassination of Donald Trump; misunderstood a bunch of shitposts about New York Mayor Eric Adams, saying he deployed 50,000 police officers to an earthquake; and erroneously claimed in an AI-generated headline ‘Iran Strikes Tel Aviv with Heavy Missiles,’” according to The Verge.

Senior Staff Writer
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V. Saxena is a staff writer for BizPac Review with a decade of experience as a professional writer, and a lifetime of experience as an avid news junkie. He holds a degree in computer technology from Purdue University.

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