Elon Musk has announced that his artificial intelligence company, xAI, has acquired X Corp., the operator of the social media platform X (formerly Twitter), in a strategic all-stock transaction.
The acquisition assigns xAI a valuation of $80 billion while valuing X at $33 billion after deducting $12 billion in outstanding debt.
Musk stated that since its founding two years ago, xAI has evolved into one of the world’s fastest-growing AI research labs, building large-scale models and data centers at an unprecedented pace.
The acquisition of X is expected to significantly enhance xAI’s capacity to accelerate its AI developments by integrating X’s global user base and distribution network.
X, under Musk’s ownership since its acquisition for $44 billion in 2022, currently serves as the “digital town square,” hosting more than 600 million active users.
The company has undergone a major restructuring process over the past two years, which Musk claims has made it one of the most operationally efficient companies globally, positioning it for scalable future growth.
Musk emphasized that the acquisition is more than a financial transaction, as it represents the formal integration of data, computing power, AI models, and distribution capabilities between xAI and X.
“xAI and X’s futures are intertwined,” Musk said. “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
The move signals Musk’s broader ambition to create an AI-powered digital ecosystem where real-time information, intelligent algorithms, and scalable infrastructure converge to deliver what he describes as “smarter, more meaningful experiences to billions of people.”
Musk credited the dedication of employees at both xAI and X for achieving this milestone and reiterated that this is only the beginning of what he plans for the combined operations.
With the AI sector witnessing increased competition from rivals such as OpenAI, Google DeepMind, and Anthropic, the acquisition of X could give xAI a distinct advantage by embedding its AI capabilities directly into one of the world’s largest real-time social platforms.
