Elon Musk announced Friday, that his artificial intelligence company, xAI, has acquired his social media platform X in an all-stock transaction. The deal values xAI at $80 billion and X at $33 billion, with X's total valuation at $45 billion including $12 billion in debt. The merged entity is now valued at $113 billion.
"@xAI has acquired @X in an all-stock transaction," Musk wrote on X Friday. "The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt)."
The Tesla and SpaceX CEO continued: "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.
"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.
"xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. 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.
"I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning. Thank you for your continued partnership and support."
X CEO Linda Yaccarino said of the acquisition "The future could not be brighter."
xAI’s AI models, including the chatbot Grok, have already been integrated into X, and the merger formalizes this relationship.
This acquisition marks a significant step in Musk's vision to create a powerful tech entity combining AI and social media.
The arrangement is similar to a previous Musk deal combining two companies he controlled. Tesla Motors acquired SolarCity, a company with Musk as its largest individual shareholder and his cousin Lyndon Rive as CEO, for $2.6 billion in 2016 and dropped “Motors” from its name.
xAI has attracted significant investment from major firms including Andreessen Horowitz, Fidelity, BlackRock, and others, valuing the company at $45 billion in a recent funding round.
