Elon Musk sells X. Credit: Shutterstock, Kemarrravv13
Elon Musk has sold his social media platform X (formerly called Twitter) to his own artificial intelligence company, xAI, in a $33 billion (€30.5 billion) all-stock transaction.
Musk announced the move in a post on X on March 28, stating, “xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent.” He said the deal will “unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
The deal values xAI at $80 billion and X at $33 billion (a drop from the $44 billion Musk paid for Twitter in 2022), which also noted Musk’s breakdown of the value: “$45B less $12B debt.”
What will change for X users?
At this stage, it’s unclear whether users of X will notice any immediate changes. As AP News reports, xAI already uses X user posts to train its models, and paying subscribers currently have access to xAI’s AI chatbot, Grok.
In the same X post, Musk added that the merged entity aims to “deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.”
The evolution of xAI
Musk launched xAI in 2023, and by February this year, the company had introduced Grok-3, its latest AI chatbot model, in a bid to challenge competitors like DeepSeek.
In February, Musk made a $97.4 billion bid, alongside a consortium, to acquire OpenAI, which was ultimately rejected.
Beyond tech, Musk’s political influence has grown. He now serves as head of the Department of Government Efficiency (DOGE) in the Trump administration, overseeing cost-cutting efforts.
With two of his own companies now combined, Musk’s move appears designed to consolidate resources and scale up AI innovation rapidly.
So, is this the beginning of a powerful AI-social media hybrid? Or simply a financial restructuring within Elon Musk’s empire?
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