Elon Musk has sold X (formally Twitter) to his own AI company xAI in a deal valued at $33 billion
In a strategic move to integrate artificial intelligence with social media, Elon Musk has sold his social media platform X — formerly known as Twitter — to his own AI company xAI. The all-stock transaction, announced on March 28, 2025, values X at $33 billion, including $12 billion in debt, and xAI at $80 billion.
In a post on X, Musk emphasized that this merger aims to “unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.” He said further that combining the data, models, compute resources, distribution channels and talent from both companies will “deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.”
Musk founded xAI in 2023 one year after buying Twitter, and since then, the AI company launched the chatbot Grok. Prior to the merger, xAI utilized data from X to train its AI models, and X users had access to Grok. The integration of these platforms is expected to deepen this synergy, potentially enhancing user interactions and content personalization on X.
Financially, this move allows Musk to leverage the high valuation of the AI sector to address X’s financial challenges, including its debt-laden capital structure. By merging X into xAI, Musk aims to boost revenue streams and capitalize on the growing prominence of AI technologies in the tech industry.
The merger has garnered mixed reactions. Some industry observers view it as a strategic alignment of AI and social media, positioning the combined entity to innovate and lead in both domains. Others express skepticism, questioning the valuation metrics and the potential impact on X’s user base and operational focus. At the moment, though, it’s unclear if the move will change anything for X users, and so as the integration progresses, stakeholders and users alike will be keenly observing how this move will reshape the digital landscape.
Earlier this month, xAI acquired a one-million-square-foot property in Southwest Memphis to support the company’s increasing presence while bringing jobs and economic benefits to Memphis. Click here for more about this announcement and other key AI infrastructure news.
