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xAI, Elon Musk's AI company, just purchased X, Elon Musk's social media company

Elon Musk's AI company, xAI, has purchased X, according to a post shared by Musk. Besides their similar names and owner, the companies are already connected through xAI's chatbot Grok, which is integrated into X.
X was acquired by xAI through an all-stock transaction. "The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt)," Musk writes. "xAI and X’s futures are intertwined." The companies plan on combining "data, models, compute, distribution and talent," using X's reach as a social platform to spread "xAI’s advanced AI capability." The post offers little detail beyond that, but the motivations could be as financial as they are practical.
@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). Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…— Elon Musk (@elonmusk) March 28, 2025



X, then Twitter, was acquired by Musk in 2022 for $43 billion. xAI, like many leading AI companies, has been raising money as often and as quickly as possible. Combining the two companies, besides the fuzzy potential benefits social media posts could have for training AI, helps ease some of the debt that Musk took on taking Twitter private. The billionaire pulled a similar stunt in 2016 with Tesla, when the car maker merged with SolarCity for $2.6 billion. This article originally appeared on Engadget at https://www.engadget.com/social-media/xai-elon-musks-ai-company-just-purchased-x-elon-musks-social-media-company-221503759.html?src=rss