Musk's xAI Acquires Social Media Platform X In $33 Billion All-Stock Deal

Elon Musk’s AI venture, xAI, has acquired X (formerly Twitter) for $33 billion, signaling a significant move in Musk’s ongoing consolidation of influence across his business empire.

The all-stock transaction, announced on Friday (28 March), merges X with xAI, adding to Musk’s diverse portfolio, which also includes Tesla and SpaceX.

This move could streamline the development of his AI model, Grok.

Musk shared news of the acquisition via a post on X, stating: "The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt)."

"xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach," he added.

Analysts have said that the $45 billion acquisition is "not a coincidence"

"The choice of $45 billion is not a coincidence. It is $1 billion higher than the take-private transaction for Twitter in 2022," DA Davidson & Co analyst Gil Luria was quoted as saying by news agency Reuters.

This allows Musk to share the value of the xAI business with Twitter co-investors.

Musk's xAI startup was launched less than two years ago and recently raised $10 billion in a funding round that valued the company at $75 billion,

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