xAI Acquires X Corp in $33 Billion All-Stock Deal, Valuing Combined Entity at Over $100 Billion

San Francisco, CA – Elon Musk's artificial intelligence company, xAI, has officially acquired X Corp, the social media platform formerly known as Twitter, in an all-stock transaction. Announced on March 28, 2025, the deal values X at $33 billion, with xAI itself valued at $80 billion, bringing the total enterprise value of X to $45 billion when accounting for its $12 billion in debt. This strategic move aims to deeply integrate AI capabilities with a vast social media platform, creating a unified "everything app."

Musk, who owns both entities, stated in a post on X, "> @xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt)." He further emphasized the intertwined futures of the two companies, adding, "> Today, we officially take the step to combine the data, models, compute, distribution, and talent." This consolidation is expected to streamline operations and enhance the development of xAI's AI models, particularly its Grok chatbot.

The acquisition is primarily driven by the synergy between xAI's advanced AI development and X's extensive real-time data and user base, which boasts over 600 million active users. Grok, xAI's AI chatbot launched in November 2023, has already been integrated into X, leveraging the platform's data for training and providing real-time, conversational AI experiences. This formal merger grants xAI exclusive access to X's data streams, offering a significant competitive advantage in the rapidly evolving AI landscape.

Industry analysts suggest the merger simplifies the financial structure for investors and consolidates Musk's vision for an AI-native social platform. The deal represents a calculated restructuring that could redefine how AI evolves and interacts with the public, positioning the combined entity to compete more effectively with major AI players like OpenAI, Google, and Anthropic. This move also aims to diversify X's revenue streams beyond advertising, incorporating subscription fees and AI functionalities.

The transaction comes after X's turbulent period since Musk's 2022 acquisition, which saw significant changes in its business model and a reduction in workforce. Despite initial advertising revenue declines, X has shown improved operating performance, with U.S. ad revenue projected to grow by 17.5% to $1.31 billion in 2025. The integration with xAI is expected to unlock further potential, delivering "smarter, more meaningful experiences" to users while advancing AI technology.