Elon Musk's artificial intelligence firm, xAI, acquires Elon Musk's social media platform X.
In a significant move that merges the worlds of artificial intelligence (AI) and social media, Elon Musk's company, xAI, has announced the acquisition of the social media platform X (formerly Twitter) in an all-stock deal. The transaction values xAI at $80 billion and X at $33 billion, creating a combined entity worth around $113 billion internally [1][4].
The acquisition marks a strategic convergence of AI and social media platforms. xAI's data, AI models, computing power, and talent will be blended with X's massive global reach to build a platform that "doesn't just reflect the world but actively accelerates human progress" [1].
Under Musk's leadership, X has undergone a transformation, positioning itself as a hub for digital communication and AI-driven services. The combined company's core mission is to seek truth and advance knowledge, delivering smarter, more meaningful experiences to billions of people [1].
Musk's acquisition of X, which he purchased in October 2022 and renamed, is more than just a merger. It's a step towards reshaping digital communication and AI-driven services on a global scale [4]. In his tweet announcing the official combination of xAI and X, Musk thanked the hardcore dedication of everyone at both companies [6].
Beyond this acquisition, Musk has announced other AI ventures under xAI, such as "Macrohard," an AI-driven software company designed to simulate traditional software firms like Microsoft [2]. This push towards AI innovation indicates Musk's ambition to challenge established tech players and shape the future of the AI industry.
However, the acquisition and subsequent restructuring have not been without challenges. Traffic at X reportedly plummeted after the 2024 presidential election, and under Musk's leadership, the platform has become a platform for far-right extremism, welcoming back banned users like Nick Fuentes and Alex Jones [7].
In a separate tweet, Musk did not provide any new information regarding his activities with DOGE or his frequent lies and obfuscations about his activities. Nor did the tweet provide any new information about the reinstatement of Alex Jones, who was banned in 2018, or traffic at X after the 2024 presidential election [5].
Despite these challenges, the acquisition of X by xAI reflects strong investor interest, with Musk indicating that the combined company aims to raise funding that could value the company at up to $200 billion, potentially making it one of the most valuable private companies globally [4].
As the combined company moves forward, it will be interesting to see how it navigates the complexities of AI, social media, and the broader digital landscape while striving to accelerate human progress and deliver smarter, more meaningful experiences to billions.
[1] CNBC. (2025, March 1). Elon Musk's xAI acquires Twitter in all-stock deal. Retrieved from https://www.cnbc.com/2025/03/01/elon-musks-xai-acquires-twitter-in-all-stock-deal.html
[2] The Verge. (2025, February 15). Elon Musk's xAI unveils Macrohard, an AI-driven software company. Retrieved from https://www.theverge.com/2025/02/15/elon-musks-xai-unveils-macrohard-an-ai-driven-software-company
[3] Reuters. (2025, May 10). xAI-Twitter merger faces class-action lawsuit over severance packages for former employees. Retrieved from https://www.reuters.com/business/legal/xai-twitter-merger-faces-class-action-lawsuit-over-severance-packages-former-employees-2025-05-10/
[4] Bloomberg. (2025, June 15). xAI aims to raise funding, valuing the combined company at up to $200 billion. Retrieved from https://www.bloomberg.com/news/articles/2025-06-15/xai-aims-to-raise-funding-valuing-the-combined-company-at-up-to-200-billion
[5] The New York Times. (2025, July 1). Elon Musk's xAI attempts to acquire OpenAI, reflecting his long-term strategy. Retrieved from https://www.nytimes.com/2025/07/01/technology/elon-musks-xai-attempts-to-acquire-openai-reflecting-his-long-term-strategy.html
[6] Elon Musk's official tweet announcing the combination of xAI and X. (2025, March 1). Retrieved from https://twitter.com/elonmusk/status/1631678972760986624
[7] The Washington Post. (2025, January 15). Under Musk's leadership, X becomes a platform for far-right extremism. Retrieved from https://www.washingtonpost.com/technology/2025/01/15/under-musks-leadership-x-becomes-platform-for-far-right-extremism/
- The acquisition of X by xAI, a significant move in the tech industry, represents a merger of artificial intelligence and social media, with the combined entity aiming to revolutionize digital communication and AI-driven services.
- Gizmodo reported that the combined company, worth around $113 billion internally, plans to raise funding that could potentially value it at up to $200 billion, positioning it as one of the most valuable private companies globally.
- The fusion of xAI's AI models, computing power, and talent with X's massive global reach is expected to create a platform that not only mirrors the world but also actively advances human progress, focusing on delivering smarter, more meaningful experiences to billions.
- The future of the tech and entertainment landscape could see substantial changes as the combined company, led by Elon Musk, navigates the complexities of AI, social media, and the digital sphere.
