X, formerly Twitter, has been acquired by xAI, Elon Musk’s public-benefit AI corporation and the maker of AI chatbot Grok.
Musk, who bought the social platform in 2022, announced the deal in a post on X Friday afternoon. “xAI has acquired X in an all-stock transaction,” the billionaire wrote.
Musk claimed that the transaction will value xAI at $80 billion and X at $33 billion—or $45 billion minus $12 billion in debt.
He added in his post: “xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent.”
@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…
— Elon Musk (@elonmusk) March 28, 2025
Since Musk’s 2022 acquisition of X, then Twitter, for $44 billion, the platform’s valuation has declined by a staggering 72%, per December estimates from Fidelity—thanks in part to an advertiser exodus and dramatic platform changes including content moderation rollbacks.
XAI was launched by Musk in 2023, and in December closed a Series C funding round, which it says helped it secure $6 billion.
