San Francisco – Elon Musk's artificial intelligence company, xAI, has acquired X Corp., the social media platform formerly known as Twitter, in an all-stock transaction. The deal, announced by Musk on March 28, 2025, values X at $33 billion, bringing its full valuation to $45 billion when factoring in $12 billion in existing debt. This strategic move integrates X's vast user base and data with xAI's advanced AI capabilities.
The acquisition sees xAI valued at $80 billion, creating a combined entity that aims to leverage the synergies between a leading AI research firm and a global social media platform. Musk, who acquired Twitter for $44 billion in 2022 and subsequently rebranded it to X, stated that the combination "will unlock immense potential by blending xAI's advanced AI capability and expertise with X's massive reach."
This merger follows earlier reports of integrated operations between xAI and X, with some xAI employees also holding positions at X. The move is designed to provide xAI with direct access to X's extensive dataset, crucial for training and improving its large language models like Grok. The combined entity, now operating under X.AI Holdings Corp., seeks to deliver more intelligent and meaningful experiences to its hundreds of millions of users.
The deal also serves to consolidate the investor base of both companies under a single holding structure. xAI, founded by Musk in March 2023, has rapidly expanded its AI infrastructure, including its "Colossus" supercomputer cluster, and recently secured an additional $5 billion in debt and $5 billion in equity funding in July 2025. This funding strengthens its competitive position against other major AI players like OpenAI and Anthropic.
Industry observers note that the acquisition could provide X with a renewed narrative and potential access to new investors, while also addressing its significant debt. Linda Yaccarino, CEO of X, echoed Musk's sentiment, stating on the platform that "The future could not be brighter." The integration is expected to accelerate human progress by creating a platform that not only reflects the world but actively contributes to knowledge advancement.