In a consolidation of his tech companies, X proprietor Elon Musk mentioned in a publish on Friday that xAI, the builders of Grok, had acquired X (previously Twitter) in an all-stock transaction. In keeping with Musk, the merger values xAI at $80 billion and X at $33 billion.
Musk purchased Twitter for $44 billion in April 2022. By October 2024, Constancy Investments adjusted the valuation of its stake in X, estimating the corporate’s general worth to be roughly $9.4 billion.
Although its valuation had recovered considerably by December 2024, it was nonetheless down a whopping 77% from Musk’s buy worth. How Musk arrived at a $33 billion valuation, in different phrases, would make for attention-grabbing studying.
@xAI has acquired @X in an all-stock transaction. The mix values xAI at $80 billion and X at $33 billion ($45B much less $12B debt).
Since its founding two years in the past, xAI has quickly turn into one of many main AI labs on this planet, constructing fashions and knowledge facilities at…
— Elon Musk (@elonmusk) March 28, 2025
Already the top of a number of firms, together with SpaceX and Tesla, Musk launched xAI in July 2023, a yr after buying Twitter. Whereas he mentioned the objective of xAI was to “perceive actuality,” an ongoing feud with former enterprise companion OpenAI CEO Sam Altman was additionally a driving issue.
“At present, we formally take the step to mix the information, fashions, compute, distribution, and expertise. This mix will unlock immense potential by mixing xAI’s superior AI functionality and experience with X’s huge attain,” Musk wrote on X Friday. “The mixed firm will ship smarter, extra significant experiences to billions of individuals whereas staying true to our core mission of looking for fact and advancing information.”
Calling X “the digital city sq.,” Musk mentioned the platform boasted over 600 million energetic customers. Nevertheless, Meta, which launched a rival social media platform, Threads, in July 2023, and Bluesky, which launched in February of that yr, have been attempting to woo away customers.
Bluesky’s consumer rely surpassed 27.44 million customers in January 2025, a lot of whom had left Twitter after Musk’s takeover. On the identical time, bolstered by its connections to Fb and Instagram, Threads had over 320 million month-to-month energetic customers as of February 2025.
Musk made headlines in July of final yr when it was revealed that Grok could be skilled on X consumer knowledge. The setting could be disabled, however is on by default for consumer accounts.
Some social media customers jeered at this time’s announcement, mocking the apparently sizable valuation increase in a deal between two of Musk’s personal firms.
“I additionally offered my 2008 Honda Accord to myself for $1 million,” New York Occasions tech reporter Ryan Mac mentioned on Bluesky.
“Wait a min…what’s completely different although… apart from on paper?” an X consumer requested.
The merger, nonetheless, may serve a extra pragmatic objective. With X nonetheless carrying important debt—$12 billion, in response to Musk’s tweet—folding it into the xAI umbrella may give the corporate entry to new buyers, improved valuation, and a story pivot away from Twitter’s chaotic takeover.
“This may enable us to construct a platform that doesn’t simply replicate the world however actively accelerates human progress,” he mentioned.
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