Elon Musk has announced that his artificial intelligence company, xAI, has officially acquired the social media platform X, formerly known as Twitter. The deal, structured as an all-stock transaction, values xAI at $80 billion and X at $33 billion.
Musk originally purchased Twitter for $44 billion in 2022, and this latest move suggests a deeper integration between the two companies. In a post on X, Musk stated that the acquisition aims to combine data, AI models, computing power, content distribution, and talent to create a stronger ecosystem.
The decision may also be a strategic effort to protect investors who supported Musk’s initial purchase of X. Both companies are privately held and share key investors and resources. xAI has already been using social media data from X to train its AI models, and its chatbot, Grok, is a prominent feature on the platform.
Industry experts believe the move aligns with the growing trend of increased investments in AI, data centers, and computing technology. Musk has been actively involved in AI development and recently filed a lawsuit against OpenAI and its CEO, Sam Altman, accusing them of shifting the company’s mission toward a for-profit model.
OpenAI, meanwhile, is reportedly finalizing a $40 billion funding deal with SoftBank, contingent on restructuring into a for-profit entity. Earlier this year, Musk made a $97.4 billion takeover bid for OpenAI, but Altman rejected the offer, stating the company was not for sale.
Musk’s influence is expanding beyond technology, as he has become more involved in politics. He has been backing efforts to cut federal spending and recently contributed millions to a key election in Wisconsin. However, the state’s attorney general has challenged his involvement, asking the court to block Musk from distributing financial contributions to voters ahead of the election.
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