Elon Musk’s artificial intelligence startup xAI has acquired his social media company X, formerly Twitter, in an all-stock deal valued at $33 billion.
What Happened: On Friday, Musk announced that xAI had officially acquired X, with the deal valued at $45 billion, including $12 billion in existing debt.
The move combines Musk’s two high-profile ventures, linking xAI’s rapidly developing AI model Grok with X’s vast user data and content distribution network.
“xAI and X’s futures are intertwined,” Musk posted on X. “Today, we officially take the step to combine the data, models, compute, distribution and talent.”
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Why It’s Important: According to Musk, the acquisition raised the valuation of the merged entity to $80 billion. The billionaire acquired Twitter in 2022 for $44 billion and rebranded it as X as part of a broader vision to transform it into an “everything app.”
Some details of the deal remain unclear, including investor approval and the structure of shareholder compensation. Musk’s xAI, launched in 2023, recently raised $6 billion at a $40 billion valuation and introduced Grok-3, a chatbot intended to rival OpenAI’s ChatGPT.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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