GUWAHATI: Tesla CEO Elon Musk announced on Saturday, March 29, that his artificial intelligence company, xAI, has acquired X (formerly Twitter) in an all-stock transaction valued at $33 billion. The move has merged xAI’s advanced AI capabilities with X’s massive user base.
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Musk shared the news on X, stating, “The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).” He noted that this deal will now allow co-investors in X to benefit from xAI’s growth.
Emphasising the strategic importance of the merger, Musk added, “xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution, and talent.” X’s CEO Linda Yaccarino also expressed optimism, posting, “The future could not be brighter.”
Musk acquired X in October 2022 for $44 billion but later acknowledged the platform’s financial struggles. In January, he informed employees that X was in a “very dire situation from a revenue standpoint,” with stagnant user growth and unimpressive earnings.
Meanwhile, xAI has seen rapid expansion, securing $6 billion in funding from investors like BlackRock, Nvidia, and AMD in December 2024, raising its valuation to nearly $40 billion.
The acquisition follows Musk’s recent ranking as the world’s richest person for the fourth time in five years, with a net worth of $420 billion.
