XAI

Elon Musk’s AI company, xAI, has officially acquired his social media platform X in an all-stock deal.

The move values xAI at $80 billion and X at $33 billion, factoring in $12 billion of debt.

When adding the debt, the value of X comes in at $45B - $1B more than what Musk paid for the company.

Fair valuation or pump and dump? You decide.

The two companies will now sit under a new umbrella, xAI Holdings Corp.

Musk described the merger as a way to combine “data, models, compute, distribution and talent”, in short, bringing everything into one place to push his AI ambitions forward.

xAI’s chatbot Grok was already built into X, but this deal tightens the link.

With over 600 million active users, X gives xAI a massive data source and a ready-made platform to roll out AI tools more widely.

In brief:

  • xAI now owns X, combining social media and AI under one holding company

  • The deal values xAI at $80B and X at $33B

  • X provides user reach and training data to accelerate xAI’s development

Not just a social app anymore

Launched in 2023, xAI has been moving fast; hiring top AI researchers, raising $6 billion in funding and releasing its latest model, Grok 3, in February.

At the same time, Musk has been clashing with OpenAI, the startup he co-founded.

That includes a lawsuit over its profit structure and a rejected $97 billion takeover offer.

Musk originally bought X for $44 billion in 2022.

Since then, its valuation has gone up and down.

By linking it to xAI, he’s making it clear that X is now a core part of his AI game plan.

That $44B Twitter buy was just the prequel, apparently.

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