In a surprising move, Elon Musk announced via X (formerly Twitter) that xAI has acquired the social media platform in an all-stock transaction.
According to Musk’s post, the deal values xAI at $80 billion and X at $33 billion (calculated from a $45 billion valuation minus $12 billion in debt).
Elon Musk acquired Twitter for $44 billion in 2022 following months of negotiations and a competitive bidding process. Supported by institutional investors and private equity firms, Musk successfully took ownership of the company. He later rebranded it to X, implementing a comprehensive overhaul that included changes to the organization’s algorithm, advertising strategies, moderation standards, and workforce. To lead the revamped company, he appointed Linda Yaccarino, a seasoned executive with prior experience at NBCUniversal and Turner, as CEO.
Musk stated that xAI, founded two years ago, has quickly become a leading AI lab, building models and data centers at an unprecedented rate.
@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). 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 unprecedented speed and scale. X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth. 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. 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. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress. I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning. Thank you for your continued partnership and support.
the original tweet
He described X as the “digital town square” with over 600 million active users.
“xAI and X’s futures are intertwined,” Musk wrote, emphasizing the combination of data, models, compute power, distribution, and talent. He believes this will “unlock immense potential” by merging xAI’s AI capabilities with X’s broad reach.
The combined company aims to deliver “smarter, more meaningful experiences” while pursuing the core missions of seeking truth and advancing knowledge. Musk envisions a platform that “doesn’t just reflect the world but actively accelerates human progress.”
Musk acknowledged the dedication of the teams at xAI and X, calling this “just the beginning.”
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