Elon Musk’s AI start-up, Xai, has acquired the social media platform, formerly known as Twitter, in an All-Stock Agreement, announced to a Post in X Friday.
“Xai has acquired X in a transaction of all stocks,” Musk said. “XAI combination prices at $ 80 billion and X at $ 33 billion ($ 45b minus $ 12b debt).”
Musk continued to describe the contracts of the two companies as “interconnected”. He added, “today, we are officially taking the step to combine data, models, calculation, distribution and talent.”
The acquisition places the X – the extremely influence of the social media platform he bought in 2022 under the previous twitter name – steadily under the umbrella of Musk’s AI start -up, which he founded in 2023 to compete with Openai. While XAI products, including AI Chatbot Grok, were closely integrated into the X platform before this deal, the acquisition of Friday combines two of Musk’s highest companies.
According to posts such as the Wall Street Journal, the shares of X and XAI will be Exchange for shares of a new portfolio company Named Xai Holdings Corp. The WSJ also states that executives in both companies believed it would be easier to raise money for a combined entity.
Musk – who also leads Tesla, SpaceX and Neuralink – notes that this agreement estimates the X to $ 33 billion (reduced by a $ 45 billion business value due to $ 12 billion debt). Musk initially bought X for $ 44 billion in October 2022 and got it private. However, the valuation has become dramatically in recent years. At one point, Fidelity is worth X in less than $ 10 billion.
In the months of President Donald Trump’s inauguration – for which Musk fought aggressively and for which Musk is now serving as a Doge Special Advisor – X valuation has increased, mainly because investors believe the platform is more important now. Musk said in place on Friday that X has more than 600 million active users.
The Musk started XAI in 2023 and has since boosted the start with AI’s leading researchers from Google Deepmind, Microsoft and Openai and created the huge AI data centers needed to cover other AI Frontier developers. To supply these efforts, Musk has carried out a historic capital rally campaign, including a $ 6 billion funding round in December that assessed the start of $ 45 billion. According to Musk, XAI’s valuation is now even higher at $ 80 billion.
XAI was largely successful in its crazy dash to cover Openai, Google Deepmind and Anthropic. In February, the start was released by the Grok 3, an AI Frontier model that is competitive with the top -notch AI models in the industry in reference points that measure mathematics, science and coding.
But Xai’s successes have not stopped Musk mixing with Openai, a start -up with Sam Altman. Musk is currently trying to overthrow the transition of the speculative Openai-which he must complete to secure future funding-in more ways than one. The billionaire owner of XAI has made the transition of Openai to profit the central element of his lawsuit against Openai. Musk also submitted a $ 97 billion acquisition offer to start Altman in February. The Openai Board of Directors immediately rejected the idea, but may have already driven the purchase price for OpenAi’s assets.
One of the most important advantages of XAI beyond Openai and other newly established businesses is to access X. The large body of the positions that have accumulated X over the years gives XAI an important advantage in the AI training data. In addition, X gives AI Musk’s AI a huge application of consumers to reach users.
Musk has a history of blurring the lines between his many companies, which has landed him in a legal problem before. With the acquisition of X XAI, the two are now essentially one – and the movement indicates that the true value of X may be in promoting the broader AI ambitions of Musk.
This story has been informed with additional details about the structure of the agreement.
