SAN FRANSISCO, USA – Elon Musk’s artificial intelligence (AI) startup, xAI, has acquired X, the social media platform formerly known as Twitter, in an all-stock transaction valued at $33 billion.
Musk made the announcement on X on Friday, March 28, 2025, revealing that the merger would combine X’s vast data resources with xAI’s advanced AI models, positioning both companies for greater innovation.
“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),” Musk wrote.
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent.”
The acquisition marks a significant development for Musk’s ventures, bringing together the powerful social media platform X with the cutting-edge AI capabilities of xAI.
While Musk underscored the strategic alignment between the two companies, he provided few details about the integration of leadership or how the companies will navigate regulatory oversight in the future.
Musk originally acquired X, then Twitter, in October 2022 for $44 billion.
Since then, he has implemented sweeping changes to the platform, including reshaping its business model and user experience.
However, the acquisition and its aftermath have been clouded by legal challenges, including a lawsuit filed by the United States Securities and Exchange Commission (SEC) in January.
The SEC lawsuit accused Musk of failing to disclose his ownership of more than five percent of Twitter shares in a timely manner, which allegedly allowed him to purchase stock at artificially low prices.
Musk responded by criticising the SEC, accusing the agency of focusing on minor issues while neglecting more significant crimes.
xAI, founded two years ago with a mission to “understand the true nature of the universe,” has made significant strides in the AI sector.
The company raised $6 billion in a Series C funding round in December 2024, bringing its valuation to $45 billion.
The merger with X could provide xAI with invaluable data and access to millions of users worldwide, allowing for enhanced AI development and deployment.
