Elon Musk Sells X to His AI Startup in a $33 Billion Deal

Elon Musk, owner of both X (formerly Twitter) and xAI, announces the sale of the social media platform. xAI has acquired X in a deal valued at $33 billion.

Changes for the platform formerly known as Twitter are underway. Musk purchased Twitter in 2022, renaming it X the next year. He disclosed that this lucrative deal is an all-stock transaction between xAI and X.

In Musk's March 28 post on X, he stated, "The combination values xAI at $80 billion and X at $33 billion ($45 billion less $12 billion debt)." Since its inception, xAI has swiftly emerged as a leading AI lab globally. The company is known for building models and data centers at remarkable speed.

Musk mentioned, "X serves as the digital town square for over 600 million active users." He noted that the platform transformed into one of the world's most efficient companies in two years. This change positions it for scalable growth.

Over a year after launching Grok, an AI-powered chatbot similar to ChatGPT, Musk indicated it was time to combine resources. He stated, "We will combine our data, models, compute, distribution, and talent."

Musk elaborated that "xAI and X’s futures are intertwined." He believes the combined company will provide smarter, more meaningful experiences for billions globally. The aim remains to seek truth and promote knowledge, building a platform enhancing human progress.

Musk expressed gratitude towards the dedicated teams from both organizations, concluding, "This is just the beginning."

Following Musk's announcement, X CEO Linda Yaccarino shared his vision. She assured users that "the future could not be brighter."

User reactions to this business deal varied greatly. One person expressed curiosity, stating, "Why did X fold into xAI and not the other way around? X has the broader base."

Another user simply remarked, "Wow. Didn’t see this coming."

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