Elon’s xAI swallows up social network X in a surprise move

Elon Musk said his xAI artificial intelligence startup has acquired the X platform, which he himself controls, at a valuation of $33 billion, marking a surprise twist for the social network formerly known as Twitter.
“The combination values xAI at $80 billion and X at $33 billion,” the billionaire wrote Friday in a post on X. The value of X is $45 billion when including $12 billion of debt, he said, describing the purchase as an all-stock transaction. Morgan Stanley was the sole banker on the deal, representing both sides.
For Musk, the deal streamlines his businesses and solidifies the relationship between X and xAI, which has used information from the social network to hone its chatbot. The deal offers a resolution to X’s backers following months of uncertainty over the state of their investment as Musk’s changes led to an exodus of users and advertisers.
“XAI and X’s futures are intertwined,” Musk posted. “Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.” Musk acquired Twitter for $44 billion in 2022.