Elon Musk announced Friday evening that his artificial intelligence company, xAI, has acquired X, the social media platform formerly known as Twitter, in a $45 billion deal. The sale price is slightly higher than the $44 billion Musk paid for the platform in 2022, but the agreement includes $12 billion in debt.
Musk shared the news on his X account, revealing that the deal values the company at $33 billion. “xAI and X’s futures are intertwined,” Musk wrote. “Today, we officially take the step to combine the data, models, compute, distribution, and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
While Musk did not immediately announce any major changes to X, the platform has already integrated xAI’s chatbot, Grok. He emphasized that the merger will create “smarter, more meaningful experiences” and estimated the combined value of xAI and X at $80 billion.
Since acquiring Twitter in 2022, Musk has dramatically reshaped the platform, slashing 80% of its workforce, revamping its verification system, and reinstating controversial accounts. These changes prompted an exodus of major advertisers, and the company’s valuation plummeted.
Investment firm Fidelity estimated in October that X had lost nearly 80% of its value compared to Musk’s purchase price.
By December, the platform had partially rebounded but was still worth only about 30% of its original acquisition cost. The latest sale signals a financial recovery, even though X remains far below its initial valuation.
The acquisition comes amid growing scrutiny over Musk’s multiple leadership roles, including his position at the Trump administration’s Department of Government Efficiency.
Some critics have questioned whether Musk is spreading himself too thin, particularly regarding his responsibilities at Tesla.
Musk has also positioned himself as a major player in artificial intelligence, a sector of increasing importance to both the tech industry and the Trump administration.
Earlier this year, he spearheaded an investor group’s attempt to acquire OpenAI, the maker of ChatGPT, for nearly $100 billion—an effort that intensified his rivalry with OpenAI CEO Sam Altman.
While the exact benefits of X’s integration with xAI remain unclear, the deal could accelerate the adoption of Musk’s AI technology by leveraging X’s vast user base. By merging the two companies, Musk is aiming to streamline his efforts and solidify his presence in the AI space.