Musk says xAI buys social media platform X for $45 billion
(The Hill) – Elon Musk said on Friday his artificial intelligence firm xAI has bought his social media platform X.
"xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent," Musk wrote in a post on X. "This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach."
The $45 billion deal values xAI at $80 billion and X at $33 billion, more than $10 billion less than he paid for the platform formerly known as Twitter in 2022.
The all-stock transaction included $12 billion debt, Musk said.
The tech billionaire said he hopes the approach will deliver "smarter, more meaningful experiences" to users while remaining true to "seeking truth and advancing knowledge."
"This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress," he wrote.
Musk, who also owns aerospace company SpaceX and leads electric vehicle maker Tesla, touted xAI's development in its first two years as he seeks to keep up in the AI race.
Describing X as a "digital town square" he claimed it is now one of the most efficient companies in the world under his leadership.
Upon purchasing then-Twitter in 2022, Musk sought to overhaul the company. The chaotic takeover was marked by the quick firings of top executives, a reduction in half of the company's workforce and a rollback of some policies.
The approach resembles his leadership of President Trump's so-called Department of Government Efficiency, which seeks to reduce government waste and bureaucracy.
It is not immediately clear how each company will change, though they already overlap to some degree with xAI's Grok chatbot available on X.