Elon Musk’s xAi acquires microblogging site X at $33 billion

Elon Musk has sold his social media platform X, formerly Twitter, to his artificial intelligence startup xAI in a deal that valued the company at $33 billion.

"This combination will unlock immense potential by blending xAI's advanced AI capability and expertise with X's massive reach," Musk said in a post on his social network.

The tech giant had bought Twitter for $44 billion in late 2022 in a deal that included debt. In 2023, he launched xAI and invested billions of dollars in high-end Nvidia chips.

The merger, structured as an all-stock deal, values xAI at $80 billion and X at $33 billion, including the social network's $12 billion debt.

Musk said that the merger is aimed at unlocking significant potential of xAI’s advanced capabilities and with that of X which currently has more than 600 million users.

"Today, we officially take the step to combine the data, models, compute, distribution, and talent," Musk said on the merger of two companies.

"This will allow us to build a platform that doesn't just reflect the world but actively accelerates human progress, he added.
In February, xAI released the latest version of its chatbot, Grok 3, which Musk has high hopes for as he thinks it will find traction in a highly competitive sector dominated by the ChatGPT and China's DeepSeek.

The billionaire has described Grok 3 as "scary smart," with 10 times more potent than its predecessor released in August 2024.