xAI Acquires X in $33 Billion All-Stock Deal, Consolidating Musk's AI and Social Media Empire

San Francisco – xAI, Elon Musk's artificial intelligence company, has officially acquired X (formerly Twitter) in an all-stock transaction, a move announced on March 28, 2025. The deal values xAI at $80 billion and X at $33 billion, reflecting X's $45 billion enterprise value less $12 billion in debt. This strategic consolidation aims to deeply integrate AI capabilities with a global social media platform.

Elon Musk, who controls both entities, stated the acquisition is a pivotal step in intertwining the futures of his AI and social media ventures. "Today, we officially take the step to combine the data, models, compute, distribution and talent," Musk posted on X, emphasizing the synergy between xAI's advanced AI and X's extensive reach. The combination is expected to unlock immense potential by blending xAI’s expertise with X’s massive user base of over 600 million active users.

The merger is designed to enhance X's functionality through AI-driven features, particularly by leveraging X's real-time data streams to train and refine xAI's large language models, such as Grok. Grok was already integrated into X prior to the acquisition, providing users with conversational AI directly within the platform. This move simplifies the ownership structure and aims to boost the combined entity's valuation, positioning it as a leader in AI-native social platforms.

Industry analysts suggest the acquisition signifies Musk's vision to create a comprehensive "everything app" that seamlessly merges social interaction with cutting-edge artificial intelligence. While the deal consolidates Musk's control, questions regarding data privacy, content moderation, and the broader influence of AI in daily communication are anticipated. Linda Yaccarino is expected to continue as CEO of X, with Musk remaining as chairman and chief technology officer.