Elon Musk has revealed that his artificial intelligence company, xAI, has taken over the social media giant X. The deal, finalized through an all-stock exchange, was unveiled in a post on X this past Friday, with Musk declaring, “@xAI has taken ownership of @X in a seamless transaction.”
@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).
— Elon Musk (@elonmusk) March 28, 2025
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…
Musk praised xAI’s meteoric rise, noting that in just two years, it has emerged as a powerhouse in AI development, constructing cutting-edge models and infrastructure at a breakneck pace. He hailed X as “the virtual hub where over 600 million active users seek real-time, unfiltered truth.”
Musk’s journey with X began in late 2022 when he purchased Twitter, later rebranded as X. His tenure brought sweeping changes, from slashing operational costs through staff reductions and contract overhauls to loosening content moderation policies and reactivating select suspended profiles.
Highlighting X’s evolution, Musk touted it as a lean, high-efficiency operation with vast growth potential. He underscored the synergy between the two entities, saying, “The paths of xAI and X are now fused, uniting their data, technology, reach, and expertise in a transformative step forward.”
This acquisition aligns with Musk’s broader ambitions in AI, a key focus under U.S. President Donald Trump’s administration, where Musk spearheads the Department of Government Efficiency (DOGE). Industry observers note his drive to cement a dominant position in the AI sector.
Earlier this year, Musk sought to orchestrate a blockbuster $100 billion buyout of OpenAI, the ChatGPT pioneer he co-founded in 2015 before parting ways. OpenAI’s CEO, Sam Altman, rebuffed the bid. Undeterred, Musk launched xAI in 2023, setting the stage for his latest power play in the tech world.
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