Elon Musk transfers ownership of X to his AI company, xAI, in a $33 billion all-stock transaction
International Desk
Elon Musk has transferred ownership of the social media platform X to his artificial intelligence company, xAI, in an all-stock deal valued at $33 billion, he announced on Friday.
Since both companies are privately owned, they are not obligated to disclose their financial details publicly.
In a post on X, Musk stated that the deal aims to “unlock immense potential” by integrating xAI’s advanced AI capabilities with X’s vast user base. He revealed that xAI is now valued at $80 billion, while X is worth $33 billion. Musk, who also leads Tesla and SpaceX and advises former U.S. President Donald Trump, originally purchased the platform—then known as Twitter—for $44 billion in 2022. Following the acquisition, he significantly reduced its workforce, altered content moderation policies, and rebranded it as X.
He established xAI a year later.
“The futures of xAI and X are deeply connected. Today, we formally take the step of integrating data, models, computing power, distribution, and talent,” Musk wrote on X. “This merger will unlock significant opportunities by combining xAI’s expertise in artificial intelligence with X’s extensive reach. The unified company will create smarter, more impactful experiences for billions while remaining committed to the pursuit of truth and the advancement of knowledge.”
It remains uncertain whether this shift will bring noticeable changes for X users, as xAI already leverages X’s data for training its AI models. Additionally, X’s paying subscribers currently have access to xAI’s chatbot, Grok.
