San Francisco, March 28, 2025 – Elon Musk has once again reshaped his corporate empire, announcing today that his artificial intelligence venture, xAI, has acquired X (formerly Twitter) in an all-stock deal. The transaction values xAI at a hefty $80 billion and X at $33 billion, after accounting for $12 billion in debt—bringing X’s total enterprise value to $45 billion.
Musk heralded the move in a post on X, stating it aims to “integrate xAI’s advanced AI technologies, like the Grok chatbot, with X’s platform to enhance user experiences and accelerate human progress.”
The acquisition marks a significant milestone for both companies. Musk launched xAI in 2023 with a mission to advance human scientific discovery, and it has quickly gained traction, bolstered by billions in investments and cutting-edge AI developments. X, meanwhile, has been on a rollercoaster since Musk’s $44 billion purchase of Twitter in 2022. After a rocky period that saw its valuation dip amid advertiser pullbacks and operational upheaval, recent estimates peg X’s worth at $44 billion as of March 2025—a rebound that this deal slightly adjusts downward but still reflects resilience.
The strategic logic is clear: xAI’s AI prowess, including tools like Grok (already a perk for X Premium users), paired with X’s 600 million-strong user base, could create a powerhouse. Imagine AI-driven features like real-time content analysis, smarter moderation, or even personalized media generation seamlessly woven into X’s fabric. Musk’s vision of X as an “everything app” akin to WeChat gains new fuel with this merger, potentially expanding into AI-enhanced services like payments or news curation.
Yet, the move isn’t without intrigue. The all-stock nature of the deal suggests a reshuffling of Musk’s investor pool—many of whom overlap between xAI and X—raising questions about whether this bolsters X’s 2022 backers or simply consolidates Musk’s control. Financially, xAI’s $80 billion valuation underscores its meteoric rise, while X’s $33 billion net value (down from $44 billion paid) hints at a pragmatic recalibration of its post-acquisition trajectory.
Reactions are already swirling. Supporters see it as a genius play to fuse AI innovation with social media scale, potentially outpacing rivals like OpenAI. Skeptics wonder if it’s a lifeline for X, masking challenges with a shiny AI veneer. Either way, Musk’s promise of “smarter, more meaningful experiences” sets a high bar—one that users, investors, and regulators will watch closely.