xAI Acquires X in $33 Billion All-Stock Deal, Merging AI and Social Media

San Francisco – Elon Musk's artificial intelligence company, xAI, has acquired his social media platform, X (formerly Twitter), in an all-stock transaction. The deal, announced on March 28, 2025, values X at $33 billion, bringing its total enterprise value to $45 billion when accounting for $12 billion in existing debt. This strategic move aims to deeply integrate advanced AI capabilities with X's extensive global reach.

The acquisition sees xAI valued at $80 billion, with the combined entity now poised to leverage X's vast user data for enhanced AI model training. Musk stated on X, "> xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent." This consolidation is expected to unlock significant potential by blending xAI's expertise with X's platform, which boasts over 600 million active users.

Since its founding two years ago, xAI has rapidly emerged as a leading AI lab, focusing on building sophisticated models and data centers, including its "Colossus" supercomputer cluster. The company's flagship AI chatbot, Grok, has already been integrated into the X platform, providing real-time responses and engaging in online discussions. This merger solidifies the operational synergy between the two entities.

The transaction allows investors in X to gain a stake in the rapidly growing AI sector through xAI, which competes with major players like Microsoft-backed OpenAI. Analysts note that the $45 billion enterprise valuation for X is notably $1 billion higher than Musk's original acquisition price for Twitter in 2022. This valuation reflects a strategic pivot, offering X investors exposure to the burgeoning AI market.

The integration is anticipated to deliver "smarter, more meaningful experiences" to users by enhancing X's functionality with AI-driven features. This move is part of Musk's broader vision to create an "everything app" that not only reflects the world but also actively accelerates human progress. The combined company is expected to drive future growth by capitalizing on the synergy between social media data and cutting-edge artificial intelligence.