Elon Musk’s artificial intelligence firm, xAI, has acquired X, the social media platform formerly known as Twitter, in an all-stock deal valued at $45 billion, including $12 billion in debt. Announced on March 28, the merger consolidates two of Musk’s major ventures, potentially enhancing his ability to train xAI’s advanced AI model, Grok.
Musk described the acquisition as a step toward integrating data, talent, and AI capabilities, valuing the combined entity at $80 billion. xAI, launched less than two years ago, has rapidly grown, raising $6 billion in funding and developing Grok-3, a chatbot competing with industry leaders like OpenAI and DeepSeek.
The deal follows Musk’s 2022 purchase of X for $44 billion and comes amid intensifying competition in the AI sector. However, questions remain about investor approval and compensation. Separately, a U.S. judge rejected Musk’s bid to dismiss a lawsuit alleging he delayed disclosing his initial investment in X, adding to the challenges surrounding his ventures.