Elon Musk’s artificial intelligence firm, xAI, has officially acquired X (formerly Twitter) in a deal that values the social media platform at USD 33 billion. The acquisition aims to merge data, computing power, and AI models between the two companies, potentially enhancing xAI’s chatbot, Grok.
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Musk confirmed the deal on X, stating:
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution, and talent.”
The agreement values xAI at USD 80 billion and X at USD 33 billion (USD 45 billion less USD 12 billion in debt). The deal also allows xAI’s investors to share in the valuation of X.
Saudi investor Prince Alwaleed bin Talal, a major stakeholder in both X and xAI, welcomed the acquisition, stating:
“After this deal, the value of our investments is expected to reach between $4-$5 billion… and the meter is running.”
Analysts have noted that the USD 45 billion total price tag for X (including debt) is USD 1 billion higher than Musk’s 2022 Twitter buyout, reinforcing his long-term vision for the platform.
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xAI, which was launched less than two years ago, recently secured USD 10 billion in funding, bringing its valuation to USD 75 billion. The firm is in direct competition with OpenAI (backed by Microsoft) and Chinese startup DeepSeek.
Elon Musk recently attempted a USD 97.4 billion bid for OpenAI but was rejected. He has since sued the company to prevent its transition from a non-profit to a for-profit business.
As AI competition intensifies, xAI is scaling up data center infrastructure, including its “Colossus” supercomputer in Memphis, Tennessee, which is being touted as the largest AI training hub in the world.
