xAI has acquired X in deal that values social media site at $33 billion

Elon Musk said on Friday that he’s combining two of his companies, xAI and X, into a single entity.
In a post on X, Musk said xAI is the acquirer, valued at $80 billion in the deal, while X is valued at $30 billion.
Musk acquired Twitter for $44 billion in 2022, and later changed the name to X.

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preCharge News NEW YORK — Elon Musk said on Friday that his startup xAI has merged with X, his social network, in an all-stock transaction that values the artificial intelligence company at $80 billion and the social media company at $33 billion.

“xAI and X’s futures are intertwined,” Musk, the world’s richest person, wrote in a post on X. “Today, we officially take the step to combine the data, models, compute, distribution and talent.”

@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

He added that the merger would, “unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.” The purchase price, he said, was $45 billion less $12 billion in debt.

Because both companies are privately held and controlled by Musk, the transaction likely amounts to a stock swap, with X investors getting paid out in xAI shares. The companies have a number of mutual investors, including venture firms Andreessen Horowitz and Sequoia Capital, as well as Fidelity Management, Vy Capital and Saudi Arabia’s Kingdom Holding Co.

Musk, who’s also CEO of Tesla and SpaceX, acquired Twitter in a deal valued at around $44 billion in late 2022, implementing massive cost cuts and soon renaming it X. Linda Yaccarino, who Musk hired as CEO of X, wrote in a post after Friday’s announcement, “The future could not be brighter.”

Tesla CEO Elon Musk boards Air Force One with U.S. President Donald Trump (not pictured) as they departs for Philadelphia, Pennsylvania, from Morristown Municipal Airport in Morristown, New Jersey, U.S., March 22, 2025.
Nathan Howard | Reuters

Musk launched xAI less than two years ago with a stated goal to “understand the true nature of the universe.” The startup has been trying to compete directly with OpenAI, the richly valued AI startup that Musk co-founded in 2015 as a non-profit research lab. 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.

At xAI, Musk’s team has been developing large language models and AI software products, taking on offerings from OpenAI as well as Google, Microsoft, Meta and others. X and xAI have already been intertwined, with xAI’s Grok chatbot available to users of the social media app.

Investors valued xAI at around $50 billion in a financing round last year. Bloomberg reported last month that the company was in talks to raise funds at a $75 billion valuation. OpenAI was close to wrapping up a round in February at a $260 billion, while generative AI startup Anthropic was valued at $61.5 billion in a deal that closed this month.