Elon Musk Sells X to xAI in a $33 Billion Deal

In a move to consolidate, Elon Musk has sold X (formerly Twitter) to his artificial intelligence startup, xAI, in an all-stock deal valued at $33 billion. The announcement on March 28 marks a significant shift in Elon Musk’s vision for integrating AI with social media.

A Strategic Merger

Elon Musk took to X to explain the rationale behind the sale, emphasizing that the deal values xAI at $80 billion while accounting for X’s $12 billion in debt. He described X as the “digital town square,” where over 600 million active users engage in real-time discussions. By merging it with xAI, Musk aims to enhance AI-driven experiences on the platform.

This move follows the launch of Grok, an AI-powered chatbot similar to ChatGPT, which has been integrated into X over the past year. Musk stated that it was time to “combine the data, models, compute, distribution, and talent” of both companies to accelerate innovation.

The Vision for xAI and X

Elon Musk explained that xAI and X were always meant to work together. He envisions a future where AI enhances user experiences, providing more intelligent and meaningful interactions. “The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge,” Elon Musk wrote. “This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”

@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).

Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…

— Elon Musk (@elonmusk) March 28, 2025

Reactions to the Deal

X CEO Linda Yaccarino echoed Musk’s enthusiasm, reposting his announcement with the comment, “The future could not be brighter.” However, some X users were surprised by the decision. One user questioned why X was folded into xAI rather than the other way around, given X’s broader reach as a platform. Others expressed shock at the unexpected nature of the deal.

Elon Musk reassured users that the merger is just the beginning of a new phase for X. He thanked the teams at both companies for their hard work, emphasizing that their combined efforts will drive the next wave of AI innovation.

What’s Next for X and xAI?

With this merger, Musk is doubling down on his goal of making X more than just a social media platform. He has previously stated his ambition to transform X into an “everything app,” incorporating payments, AI-driven content discovery, and real-time information verification.

By integrating xAI’s advanced models and data processing capabilities, X could evolve into a highly intelligent, AI-powered news, entertainment, and commerce hub. This move also positions Musk’s AI ambitions more prominently in competition with OpenAI, Google DeepMind, and Anthropic.

The sale of X to xAI is a bold step that cements Musk’s vision of AI-powered digital experiences. While the future of X remains uncertain, one thing is clear—Musk is pushing forward with his mission to reshape the intersection of AI and social media.