Joseph Arthur
Mar 31, 2025

Elon Musk’s xAI acquires X for $33 billion

The acquisition marks a further alignment of the two companies, holding a combined value of $113 billion.

Photo: Shutterstock.
Photo: Shutterstock.

Social media platform X has been acquired by xAI, Elon Musk’s AI startup, in an all-stock transaction which values xAI at $80 billion and X at $33 billion.

Musk said in a post on X: “xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. 

“The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”

Musk purchased X, formerly Twitter, in 2022 for $44 billion. 

 

xAI, founded by Musk in 2023 to serve as a competitor to OpenAI, has been working closely with X since its inception. Notably, the AI model behind xAI’s chatbot Grok has been trained on data and social media posts from X—a significant point of difference compared to competing AI models such as OpenAI’s ChatGPT and Google’s Gemini. 

The acquisition brings the two companies even closer together, particularly financially. According to The Wall Street Journal, shares of X and xAI will be exchanged for shares of a new holding company called xAI Holdings Corp, with key stakeholders believing it will be easier to raise investment funds for a combined entity. 

Some experts have postulated that the move may be aimed at protecting Musk’s investors from losing money. 

Amid the announcement of the acquisition is Musk’s ongoing legal battle with OpenAI, a company he co-founded with Sam Altman in 2015. Musk is suing OpenAI and Altman for straying from the company’s original mission and pushing a for-profit model. 

This article first appeared on Performance Marketing World.

Source:
Performance Marketing World

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