Elon Musk’s artificial intelligence venture, xAI, has acquired the social media platform X (formerly Twitter) in a high-stakes deal valued at $45 billion. The acquisition, structured as an all-stock transaction and including $12 billion in debt, slightly edges out Musk’s own $44 billion purchase of Twitter in 2022.
Announcing the development on his X account, Musk said, “xAI and X's futures are intertwined… This combination will unlock immense potential by blending xAI's advanced AI capability and expertise with X's massive reach.”
Founded in 2023, xAI was envisioned by Musk to build AI models capable of rivaling those from OpenAI, Google and Microsoft. One of its earliest offerings was Grok — a conversational chatbot designed to provide real-time, contextual responses. As reported by NDTV, Grok has since become a widely used tool on X, engaging users in everything from discussions to information-seeking.
Over time, xAI leveraged user interactions on X to refine Grok’s capabilities, creating a feedback loop that positioned the platform as a powerful testing ground for AI applications. According to NBC News, major financial and tech players including BlackRock, Fidelity, Morgan Stanley, Sequoia Capital, Nvidia and AMD invested in xAI by the end of 2024, pushing its valuation to $45 billion.
By early 2025, additional funding brought the company’s valuation to an estimated $75 billion, as noted by The Guardian.
Despite the scale of the acquisition, no immediate changes to X have been announced. However, Musk, who is also the CEO of Tesla and SpaceX, suggested a deeper integration of AI into the platform. He described xAI as “one of the world’s fastest-growing AI labs” and called X a “digital town square” serving over 600 million active users.
“This is just the beginning,” he added, thanking both teams and the investors who supported the merger.
