In a consolidation of his tech companies, X proprietor Elon Musk mentioned in a put up on Friday that xAI, the builders of Grok, had acquired X (previously Twitter) in an all-stock transaction. Based on Musk, the merger values xAI at $80 billion and X at $33 billion.
Musk purchased Twitter for $44 billion in April 2022. By October 2024, Constancy Investments adjusted the valuation of its stake in X, estimating the corporate’s total worth to be roughly $9.4 billion.
Although its valuation had recovered considerably by December 2024, it was nonetheless down a whopping 77% from Musk’s buy value. How Musk arrived at a $33 billion valuation, in different phrases, would make for fascinating studying.
Already the pinnacle of a number of corporations, together with SpaceX and Tesla, Musk launched xAI in July 2023, a 12 months after buying Twitter. Whereas he mentioned the objective of xAI was to “perceive actuality,” an ongoing feud with former enterprise companion OpenAI CEO Sam Altman was additionally a driving issue.
“Right now, we formally take the step to mix the information, fashions, compute, distribution, and expertise. This mixture will unlock immense potential by mixing xAI’s superior AI functionality and experience with X’s huge attain,” Musk wrote on X Friday. “The mixed firm will ship smarter, extra significant experiences to billions of individuals whereas staying true to our core mission of searching for reality and advancing information.”
Calling X “the digital city sq.,” Musk mentioned the platform boasted over 600 million energetic customers. Nevertheless, Meta, which launched a rival social media platform, Threads, in July 2023, and Bluesky, which launched in February of that 12 months, have been attempting to woo away customers.
Bluesky’s person rely surpassed 27.44 million customers in January 2025, lots of whom had left Twitter after Musk’s takeover. On the identical time, bolstered by its connections to Fb and Instagram, Threads had over 320 million month-to-month energetic customers as of February 2025.
Musk made headlines in July of final 12 months when it was revealed that Grok can be educated on X person knowledge. The setting may be disabled, however is on by default for person accounts.
Some social media customers jeered immediately’s announcement, mocking the apparently sizable valuation enhance in a deal between two of Musk’s personal corporations.
“I additionally offered my 2008 Honda Accord to myself for $1 million,” New York Occasions tech reporter Ryan Mac mentioned on Bluesky.
“Wait a min…what’s totally different although… apart from on paper?” an X person requested.
The merger, nonetheless, may serve a extra pragmatic objective. With X nonetheless carrying vital debt—$12 billion, in response to Musk’s tweet—folding it into the xAI umbrella may give the corporate entry to new traders, improved valuation, and a story pivot away from Twitter’s chaotic takeover.
“This may enable us to construct a platform that doesn’t simply mirror the world however actively accelerates human progress,” he mentioned.
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