Elon Musk's artificial intelligence company, xAI, has acquired the social media platform X, formerly known as Twitter, in an all-stock transaction valued at $45 billion, including $12 billion in debt.
The acquisition assigns xAI a valuation of $80 billion and X at $33 billion. Musk announced the merger on X, stating, "xAI and X's futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution, and talent."
By integrating xAI's advanced artificial intelligence capabilities with X's extensive user base, the merger aims to enhance both platforms. xAI's chatbot, Grok, is expected to benefit from access to X's vast data, potentially accelerating its development and performance.
Musk's initial acquisition of Twitter in 2022 was for $44 billion. The current valuation of X at $33 billion, inclusive of $12 billion in debt, reflects the platform's financial adjustments since then. This merger allows xAI's co-investors to share in the value of X, aligning the interests of stakeholders across both companies.
Saudi Arabian investor Prince Alwaleed bin Talal, whose Kingdom Holding Company holds significant stakes in both X and xAI, expressed support for the merger. He anticipates that the value of their investments will rise to between $4 billion and $5 billion post-merger.
The consolidation of xAI and X is poised to create a robust platform combining artificial intelligence innovation with social media reach. This strategic move underscores Musk's vision of integrating technology and communication to drive human progress.