Elon Musk has sold the social media platform X to his own artificial intelligence company, xAI, in a $33 billion all-stock transaction, he announced on Friday.
Both X and xAI are privately held, so they aren’t required to disclose financial details publicly.
Musk stated in a post on X that this move will “unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.” He added that the deal values xAI at $80 billion and X at $33 billion.
Musk acquired X, formerly known as Twitter, for $44 billion in 2022. After the purchase, he significantly reduced staff, altered policies on hate speech, misinformation, and user verification, and rebranded the platform as X. He launched xAI a year later.
“xAI and X’s futures are intertwined. 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,” Musk wrote. “The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.”
It’s unclear if this deal will bring any immediate changes for X users. xAI already utilizes data from X user posts to train its AI models, and paying X users have access to its AI chatbot, Grok.