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Elon Musk’s X has a new owner—Elon Musk’s xAI

Mar 29, 2025 - arstechnica.com
Elon Musk announced the merger of X and xAI, valuing the social network formerly known as Twitter at $33 billion. Musk originally purchased Twitter for $44 billion in 2022. The merger was executed as an all-stock transaction, valuing xAI at $80 billion and X at $33 billion, accounting for $12 billion in debt. xAI and X were already collaborating, with xAI's Grok AI trained on X posts and available to X users. Musk emphasized that the merger would combine data, models, compute, distribution, and talent, aiming to create a platform that accelerates human progress by integrating xAI's AI capabilities with X's extensive reach.

The specifics of the deal, such as investor approval and compensation, remain unclear. Under Musk's ownership, the value of the company formerly known as Twitter decreased significantly, with Fidelity valuing it at less than $10 billion in September 2024. However, its value rebounded as Musk gained influence in the US government with Donald Trump's inauguration. Additionally, Musk has been attempting to acquire OpenAI to prevent its transition from a nonprofit to a for-profit entity. Both xAI and X remain privately held companies.

Key takeaways:

  • Elon Musk has merged X and xAI, valuing the social network formerly known as Twitter at $33 billion, down from the $44 billion purchase price in 2022.
  • The merger was an all-stock transaction, valuing xAI at $80 billion and X at $33 billion, with a $12 billion debt adjustment.
  • The combined company aims to leverage xAI's AI capabilities with X's reach to create a platform that accelerates human progress.
  • Some specifics of the deal, such as investor approval and compensation, remain unclear.
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