San Francisco, CA – Elon Musk's artificial intelligence company, xAI, has acquired X Corp., the social media platform formerly known as Twitter, in an all-stock transaction valued at $33 billion. The acquisition, announced by Musk on March 28, 2025, integrates the social media giant with xAI's advanced AI capabilities, marking a significant step in Musk's vision for an "everything app" powered by artificial intelligence.
The deal, which values xAI at $80 billion and X at $33 billion (with an enterprise value of $45 billion factoring in $12 billion in debt), was confirmed by Musk in a post on the X platform. This strategic move aims to blend xAI's AI expertise with X's extensive user base, which boasts over 600 million active users. The combination is expected to unlock immense potential by leveraging X's vast data for AI model training and integrating AI-driven features into the platform.
Musk, who acquired Twitter for approximately $44 billion in 2022 and subsequently rebranded it as X, founded xAI in March 2023 to compete in the large language model market. Products like xAI's Grok chatbot were already integrated into the X platform prior to this acquisition, utilizing data generated on X for training. This latest transaction further consolidates Musk's various ventures under a unified strategic direction.
Industry analysts suggest the acquisition provides X investors with a stake in a growing AI startup, offering a more appealing prospect than shares in a social media platform that has experienced turbulence since its 2022 takeover. The merger is also seen as a way to access new investors and potentially improve X's valuation, especially given its existing debt. The combined entity will operate under a new holding company, xAI Holdings Corp.
The acquisition underscores a broader trend of convergence between social media and artificial intelligence, with implications for data privacy, content moderation, and the future of digital communication. Both Linda Yaccarino, CEO of X, and Igor Babuschkin, co-founder of xAI, have expressed support for the acquisition, signaling a unified path forward for the newly combined entities.