San Francisco – Elon Musk's artificial intelligence startup, xAI, has officially acquired the social media platform X, formerly known as Twitter, in an all-stock transaction. The landmark deal, announced by Musk on March 28, 2025, values X at $33 billion, a significant move that integrates the social media giant into xAI's growing AI ecosystem. This acquisition aims to blend xAI's advanced AI capabilities with X's vast user base and real-time data streams.
The strategic merger positions xAI, which is valued at $80 billion, to leverage X's extensive reach and data for further AI development. This includes enhancing xAI's AI chatbot, Grok, which was already integrated into the X platform for premium subscribers. The combined entity, now operating under X.AI Holdings Corp., is expected to accelerate the development of AI-driven features and services.
Musk, who acquired Twitter for $44 billion in 2022 before rebranding it to X, stated that the acquisition would "unlock immense potential." He emphasized the intertwined futures of the two companies, highlighting the consolidation of data, models, compute resources, distribution, and talent. The deal structure accounts for X's $12 billion in debt, bringing its enterprise value to $45 billion.
Industry analysts suggest the acquisition provides a new narrative for X, moving it firmly into the AI sector and potentially attracting new investors. The move also consolidates Musk's control over both entities, streamlining his vision for an integrated AI and social media future. The acquisition comes as competition in the AI sector intensifies, with xAI actively ramping up its data center capacity and developing more advanced models.
The announcement garnered widespread attention across various sectors, including public figures. Notably, musician Justin Bieber shared a link on his X account, which many observers interpreted as a reaction to or acknowledgment of this significant industry development. The full implications of this merger for the social media landscape and AI advancement are expected to unfold in the coming months.