Elon Musk Announces Merger of X and xAI in a Game-Changing $33 Billion Deal
Elon Musk has confirmed that his AI company, xAI, is acquiring X (formerly Twitter) in a major all-stock transaction. The deal values X at $33 billion, while xAI is estimated at $80 billion, factoring in X’s $12 billion debt.
Sharing the news on X, Musk emphasized that the integration will harness xAI’s advanced artificial intelligence capabilities alongside X’s massive reach. “This merger will unlock incredible possibilities by bringing together data, AI models, computing power, and talent to create a more intelligent and impactful platform,” Musk stated.
This strategic move is set to revolutionize both AI and social media, reinforcing Musk’s vision of accelerating human progress through technology.
In just two years, xAI has established itself as a leading AI research lab, making significant strides in model development and scaling data centers. The company initially launched the chatbot Grok and has now introduced Grok 3, intensifying competition with China’s DeepSeek and Microsoft-backed OpenAI.
Echoing Musk’s excitement, X CEO Linda Yaccarino shared her optimism about the merger, stating, “The future has never looked brighter” as the two companies come together.
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