Elon Musk Has Sold X To His xAI Company

Uploaded on 2025-04-01 in TECHNOLOGY-Key Areas-Social Media, TECHNOLOGY-Key Areas-Artificial Intelligence, NEWS-Cybersecurity News, GOVERNMENT-National, FREE TO VIEW

Elon Musk has sold his social media company, X, to xAI, his Artificial Intelligence company, and xAI will pay $45 billion for X, which is about the same that Musk paid it for in 2022, although the the new combined entity will includes $12 billion of debt.

Musk wrote on his X account that the deal gives X a valuation of $33 billion. “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,” Musk said.

Musk didn’t announce any immediate changes to X, although xAI’s Grok chatbot is already integrated into the social media platform. Musk said that the combined platform will “deliver smarter, more meaningful experiences.” He said the value of the combined company was $80 billion. “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 claimed

There have been major changes to the social media platform previously named known as Twitter since Musk became involved. He reduced 80% of the company’s staff, overturned the platform’s verification system and opened suspended accounts of previously excluded users within months of the acquisition. As a consequence of these changes, it has been estimated that X was worth around 80% less than when he bought it, although it is reported that X had recovered somewhat at the beginning of the year, but was still worth only around 30% of what Musk paid.

This comes as Musk has been in a glare of negative publicity over his role at the Department of Government Efficiency (DOGE) in the new Trump Presidential administration, which has raised questions about how much time he has spent on his companies. Combining X and xAI might help Musk to streamline his efforts.

Recently, Musk led a group of investors attempting to purchase ChatGPT maker OpenAI for almost $100 Billion, another escalation in the hostile rivalry between Musk and OpenAI's CEO Sam Altman. It’s unclear how the new acquisition will benefit Musk’s AI ambitions, but integration with X could allow xAI to push its latest AI models and features to a broad audience more quickly.

While Musk has also been working to establish himself as a leader in AI technology, a big focus for both the Trump administration. Furthermore, Musk’s elevation to a highly influential special government position and US Cabinet member under President Donald Trump has empowered him with a huge influence over the operations of the US government and its Federal agencies

In many cases there is an apparent conflict of interest over issues like electric vehicle manufacturing, space communications and the regulation of AI. He has even taken positions on X and in government that have an influence on foreign relations and illegal interference in overseas elections, despite having no electoral mandate of his own.

Currently it is unclear if the move will change anything for X users as xAI already uses data from X user posts to train its AI models and paying X users also have access to its AI chatbot.

@elonmusk | CNN | NME | Guardian | DW | BBC | Euronews |

Image: Ideogram

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