Elon Musk’s xAI Revolutionizes the AI and Social Media Landscape with $45 Billion X Acquisition

Elon Musk’s artificial intelligence company, xAI, has acquired his social media platform X (formerly Twitter) in a deal valued at $45 billion, including $12 billion in debt. The transaction was announced on March 28, 2025, as an all-stock agreement that merges the two companies. The valuation places X at $33 billion and xAI at $80 billion, creating a combined entity with significant synergies123.

Musk stated that the merger aims to integrate data, models, computational resources, distribution channels, and talent from both companies to unlock immense potential. This move will leverage xAI’s advanced AI capabilities alongside X’s extensive reach456. xAI has already contributed to X by developing its AI chatbot, Grok, which is integrated into the platform7.

The acquisition reflects Musk’s broader strategy to consolidate his ventures and strengthen his position in the AI sector while addressing challenges faced by X, such as declining user engagement and advertiser exodus following controversial policy changes678.

Citations:

  1. https://www.reuters.com/markets/deals/musks-xai-buys-social-media-platform-x-45-billion-2025-03-28/
  2. https://www.cnbc.com/2025/03/28/elon-musk-says-xai-has-acquired-x-in-deal-that-values-social-media-site-at-33-billion.html
  3. https://www.axios.com/2025/03/28/musk-x-xai
  4. https://www.dw.com/en/elon-musk-sells-x-to-his-ai-company-xai/a-72079945
  5. https://nypost.com/2025/03/28/business/elon-musks-xai-buys-social-media-platform-x-for-45b-futures-are-intertwined/
  6. https://www.cnn.com/2025/03/28/business/elon-musk-sells-x-to-xai/index.html
  7. https://www.forbes.com/sites/antoniopequenoiv/2025/03/28/elon-musk-says-xai-has-purchased-x-formerly-known-as-twitter-for-33-billion/
  8. https://www.bloomberg.com/news/articles/2025-03-28/musk-says-that-his-xai-startup-has-acquired-x-for-33-billion
  9. https://x.com/elonmusk/status/1905731750275510312

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