WASHINGTON: Elon Musk’s xAI has acquired Musk’s X, the social media platform formerly known as Twitter, for $33bn. This deal adds to Musk’s growing portfolio, which includes Tesla and SpaceX. It also strengthens his ability to train his AI model, Grok.
Musk shared the news in a post on X, stating, “The combination values xAI at $80bn and X at $33bn ($45B less $12B debt).”
He added, “xAI and X’s are intertwined. Today, we officially combine the data, models, compute, distribution, and talent.”
Details about the deal remain unclear, including how investors will be compensated and how X’s leadership will fit into the new structure. Regulatory scrutiny is also a concern.
Analyst Paolo Pescatore called the deal “surprising” and said it marks a new chapter for X. Analyst Gil Luria noted the $45bn valuation is $1bn more than the 2022 private buyout of Twitter. This gives Musk leverage with X’s co-investors.
Musk has also expanded his influence in Washington, overseeing cost-cutting efforts for the Trump administration as head of the Department of Government Efficiency, or Doge. This role may allow him to shape agencies that regulate his business.
