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Elon Musk announced on Friday that xAI, his AI startup, had acquired X, his social media platform formerly known as Twitter, in an all-stock transaction combining two of Musk’s highest-profile companies.
In a post on X, Musk wrote that the deal values xAI at $80 billion and X at $33 billion, giving the two companies a total value of $113 billion. The new joint entity will be known as XAI Holdings, per Bloomberg.
The goal of the acquisition is to build a social media site with advanced AI features. In other words, Musk claimed that xAI’s acquisition of X will allow xAI to bring advanced “smarter, more meaningful” AI experiences to X’s more than 600 million active users.
Related: Elon Musk’s Newest AI Chatbot Outperformed ChatGPT in One Key Area
“xAI and X’s futures are intertwined,” Musk wrote in the X post, which has garnered more than 55 million views. “Today, we officially take the step to combine the data, models, compute, distribution and talent.”
@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…
— Elon Musk (@elonmusk) March 28, 2025
xAI and X have been slowly integrating for years. According to Bloomberg, xAI has reportedly used data from X to develop its flagship product, an AI chatbot named Grok that sets itself apart from competitors like ChatGPT and Gemini by incorporating sarcasm and humor. Premium X users were the first to access Grok on X in December 2023.
X and xAI are both private companies, so no details of the deal were made public except for Musk’s post.
Related: Elon Musk Releases the AI Model Behind Grok, a Competitor to OpenAI’s ChatGPT
X is an established social media company with over 2,000 employees and an expected U.S. ad revenue of $1.31 billion this year, a 17.5% yearly increase. Musk bought the company, then called Twitter, for $44 billion in October 2022. Since then, Twitter has rebranded to X, implemented cost cuts, and added new features, including a subscription service.
Musk founded xAI in March 2023 to understand the universe, the company’s website says. The AI startup raised $6 billion in December and unveiled Grok 3 last month.
Grok is available on web browsers and mobile devices, but it is also integrated into the X platform. X users can use Grok to ask questions, brainstorm, and solve problems by visiting x.com or the X app on iOS or Android and clicking the Grok icon in the navigation bar.
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