In a bold move to reshape the future of artificial intelligence and social media, Elon Musk has announced that his AI company, xAI, has officially acquired X — formerly Twitter — in an all-stock deal that values the social platform at $33 billion.
Musk revealed the deal on Friday via a post on X, emphasizing that the two companies will now operate as one entity, combining their respective data, computing power, distribution networks, and talent pools.
Musk wrrote:
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent.”
Although neither xAI nor X is publicly traded, the transaction marks a significant consolidation of Musk’s tech empire. No additional financial details were released, leaving questions around Musk’s own payout from the merger unanswered.
What This Merger Means for the Future of AI and Social Media
The acquisition brings together Musk’s two most prominent ventures under one umbrella, positioning the newly unified company to challenge industry heavyweights in both AI development and online communication. Musk suggested that this merger is about far more than business—it’s about accelerating progress.
“This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach,” Musk added. “Together, we’ll create smarter, more meaningful experiences for billions, all while staying true to our mission of truth and knowledge advancement.”
From Twitter to X to xAI: A Rapid Transformation
Since acquiring Twitter for around $44 billion in 2022 and rebranding it to X, Musk has radically reimagined the platform’s role in society. Under his leadership, X has increasingly leaned into AI-driven features, most notably Grok—a chatbot built by xAI and integrated into the platform to engage with users, comment on threads, and join real-time discussions.
Launched in 2023, Grok was introduced as an alternative to mainstream chatbots like ChatGPT and Google Gemini. Musk has branded it as a “truth-seeking,” anti-woke AI assistant, though it hasn’t always agreed with him, sparking debate around its independence.
X CEO Linda Yaccarino echoed Musk’s enthusiasm about the future, reposting his announcement with a comment: “The future could not be brighter.”
xAI’s Soaring Valuation and Investor Backing
xAI has quickly emerged as a major force in the competitive AI landscape. In December, it raised funding from major investors, including BlackRock, Fidelity, Morgan Stanley, Sequoia Capital, and top chipmakers Nvidia and AMD. That round pushed xAI’s valuation to $45 billion.
Now, the company is reportedly eyeing another funding round that could value it as high as $75 billion, reflecting intense investor interest in AI technologies capable of handling increasingly complex tasks.
The broader AI boom shows no signs of slowing. Investors and tech giants alike are racing to build out the infrastructure—massive computing power, reliable energy sources, and top-tier engineering talent—needed to push the limits of AI innovation.
Political Ties and AI’s Growing Influence
Musk’s deepening involvement in both AI and politics has also drawn attention. He’s become a visible adviser to Donald Trump, who has made AI policy a key talking point in his campaign. After winning re-election, Trump wasted no time signing an executive order to roll back Biden-era AI regulations, aiming to stimulate faster development across the sector.
The combination of political influence and technological advancement has sparked concern among experts. Many leaders in tech and AI, along with watchdog organizations, warn that an unchecked AI arms race—especially with countries like China investing heavily in the space—could carry serious global risks.
