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Elon Musk’s AI firm Xai has purchased Tech Billionaire’s social media platform X in a landmark deal valued at $33 billion.
The CEOs of Tesla and SpaceX announced on social media on Friday, mentioning that the agreement is an all-stock transaction that opens up tremendous opportunities by merging Xai’s cutting-edge AI technology and proficiency with X’s extensive reach.
Musk indicated that this merger will place Xai’s value at $80 billion, comprising $33 billion in X, which is $45 billion less than the $12 billion in debt.
This image displays the Xai logo on a smartphone with Elon Musk’s official profile visible from the background social network X. Xai has made a significant acquisition of Tech Billionaire’s platform X. (Jaque Silva/Sopa Images/Lightrocket via Getty Images)
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Musk, the richest person globally, purchased X, formerly known as Twitter, for $44 billion in 2022, reversing the platform’s censorship and asserting its underutilization.
“The Entire Company offers a smarter, more meaningful experience for billions, while remaining committed to our foundational goal of promoting truth for knowledge,” Musk stated.
“This enables us to build a platform that not only mirrors the world but also actively drives human advancement.”
He claims X is the Digital Town Square, boasting over 600 million active users seeking a real-time source for Ground Truth.
“Over the past two years, we have evolved into one of the most efficient companies globally, preparing them to deliver scalable future growth,” wrote Musk.
Xai’s main product is Grok, an AI chatbot already available on X for premium users. It aims to rival other chatbots, like ChatGPT developed by OpenAI. Zai is also in competition with Google’s Gemini and Anthropic’s Claude.
In December 2024, Musk requested the court to prevent the transition to a for-profit structure, as reported by Reuters. (Chesnot/Getty Images/Getty Images)
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Musk co-founded OpenAI in 2015 alongside Sam Altman, Ilya Sutskever, and Greg Brockman but departed the organization in early 2018 after failing to establish control as a majority owner and CEO. He later sought to persuade the founder to merge with Tesla.
Musk subsequently launched Xai in March 2023, obtaining $10 billion in funding that valued the company at $75 billion, according to media sources. Xai introduced a new chatbot, Grok-3, last month.
In December 2024, Musk approached the court to halt the shift to a for-profit firm, as reported by Reuters.
Xai's primary product is Grok, an AI chatbot that is fully integrated into X for premium users. (Photo by Jakub Porzycki/Nurphoto via Getty Images/Getty Images)
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With the escalating competition in AI, Xai is enhancing the capabilities of its data centers to develop more advanced models, and its supercomputer facility in Memphis, Tennessee, known as “Colossus,” is being recognized as the largest globally.
The X platform offers real-time updates of user interactions, screenshots, and other data, assisting in broadening the reach of Xai products.
Reuters contributed to this report.
