Elon Musk says he has sold his social media site X (Twitter) in a US$33 billion (about $C47 billion) all-stock deal to his own AI startup company, xAI.
“xAI and X’s futures are intertwined,” wrote Musk in an X post on Friday. “Today, we officially take the step to combine the data, models, compute, distribution and talent.”
He added that the merging of these two companies will “unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.” The value of the combined company is US$80 billion (about C$114 billion), according to Musk.
@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…
— Elon Musk (@elonmusk) March 28, 2025
Of course, this whole scheme is a way for Musk to increase the value of X, which has been struggling ever since he acquired the company formerly known as Twitter in 2022.
At the time, Musk paid US$44 billion (about C$62.9 billion) for the platform, and many of his decisions — including cutting 80 per cent off staff, reinstating white supremacist accounts and invalidating verification, among others — led to many advertisers pulling out and lowering the company’s value. While some advertisers, like Apple, have returned to the platform, X is only worth about 30 per cent of what Musk paid, according to the firm Fidelity.
Musk didn’t announce any changes to X amid this xAI merger. So far, the social media platform features integration with xAI’s Grok AI chatbot.
Musk also said last year that he plans to use xAI to “make games great again,” a reference to his tired and baseless “anti-woke” tirades against gaming that recently led to him getting embarrassed on his own social media platform by the official Assassin’s Creed account. It remains to be seen how someone who both misunderstands games and is demonstrably terrible at them plans to get into game development.
Source: Elon Musk (@elonmusk)
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