Musk Sells X to His Own AI Company for $45B Less $12B Debt [WATCH]

In a significant move, Elon Musk’s artificial intelligence company, xAI, has acquired the social media platform X, valued at $33 billion.

Musk, the CEO of Tesla and SpaceX, made the announcement on Friday, confirming that the deal was an all-stock transaction.

He emphasized that the merger would bring together xAI’s advanced artificial intelligence capabilities with X’s vast reach, creating opportunities for immense growth and innovation.

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The combined deal places xAI’s valuation at $80 billion and X at $33 billion.

However, Musk noted that X carries a $12 billion debt, leaving the platform valued at $45 billion less than its actual worth.

Musk, who purchased X—formerly known as Twitter—for $44 billion in 2022, has long been vocal about the platform’s underutilized potential.

When he acquired X, Musk outlined plans to rollback censorship and bring transparency to the platform, which has over 600 million active users.

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The billionaire’s new vision is for a smarter and more efficient social media platform that prioritizes truth and knowledge.

“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,” Musk wrote in a statement on X.

He further elaborated, saying that the combination of the two companies would allow for the creation of a platform that doesn’t just reflect the world but 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).

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

Musk’s goal is for X to function as the digital town square where users can access real-time information and engage in dynamic conversations.

He highlighted the transformation X has undergone in the last two years, positioning it to become one of the most efficient companies in the world, ready to deliver scalable growth in the future.

A key component of xAI’s portfolio is Grok, an AI-powered chatbot that has already been integrated into X for premium subscribers.

Grok is designed to compete with existing AI chatbots like OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude.

This product reflects xAI’s push to solidify its place in the competitive AI market, which has been rapidly expanding.

Musk co-founded OpenAI in 2015, alongside Sam Altman, Ilya Sutskever, and Greg Brockman, but split from the company in early 2018 after he was unable to secure majority control.

He subsequently attempted to merge OpenAI with Tesla. In March 2023, Musk founded xAI and, in a recent funding round, raised $10 billion, bringing the company’s valuation to $75 billion.

xAI’s chatbot, Grok-3, was unveiled last month, showcasing the company’s growing presence in the AI space.

In December 2024, Musk took legal action to prevent OpenAI from transitioning into a for-profit organization, a move that highlights his ongoing concerns about the direction the AI industry is taking.

With the acquisition of X, xAI now has a more direct platform to distribute its products, with X’s user base providing a vast repository of real-time data.

The integration of xAI’s technology with X also opens the door for more advanced features, such as enhanced content creation tools and AI-powered moderation systems, potentially transforming the user experience for millions of X’s active members.

As competition in the AI sector heats up, xAI has been increasing its data center capacity to support the growing demands of training advanced AI models.

Its supercomputer cluster, called “Colossus,” based in Memphis, Tennessee, is considered the largest in the world, further solidifying Musk’s position at the forefront of the AI race.

The merging of xAI and X signals a new era of possibilities in artificial intelligence and social media.

Musk’s ambitious vision for the future of both companies aims to create a platform that not only engages users but also drives forward technological innovation.

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