In a consolidation of his tech businesses, X owner Elon Musk said in a post on Friday that xAI, the developers of Grok, had acquired X ( formerly Twitter ) in an all-stock transaction. According to Musk, the merger values xAI at$ 80 billion and X at$ 33 billion.
Musk bought Twitter for$ 44 billion in April 2022. By October 2024, Fidelity Investments adjusted the assessment of its interest in X, estimating the company’s overall worth to be roughly$ 9.4 billion.
Though its valuation had recovered somewhat by December 2024, it was still down a whopping 77 % from Musk’s purchase price. How Musk arrived at a$ 33 billion valuation, in other words, would make for interesting reading.
Now the mind of many companies, including SpaceX and Tesla, Musk launched xAI in July 2023, a time after purchasing Online. While he said the goal of xAI was to “understand reality”, an ongoing rivalry with former business partner OpenAI CEO Sam Altman was also a driving issue.
” Today, we actually take the step to merge the data, models, determine, supply, and skill. This mixture will access enormous potential by blending xAI’s developed AI capability and expertise with X’s large reach”, Musk wrote on X Friday. ” The merged company will offer smarter, more important experiences to billions of people while staying true to our main goal of seeking facts and advancing information”.
Calling X” the online community square”, Musk said the program boasted over 600 million energetic people. But, Meta, which launched a foe social media platform, Fibers, in July 2023, and Bluesky, which launched in February of that year, have been trying to entice away customers.
Bluesky’s customer matter surpassed 27.44 million people in January 2025, many of whom had left Online after Musk’s invasion. At the same time, bolstered by its links to Facebook and Instagram, Threads had over 320 million monthly active users as of February 2025.
Musk made headlines in July of last year when it was revealed that Grok may get trained on X customer information. The environment can be impaired, but is on by default for customer transactions.
Some social media users jeered today’s news, mocking the seemingly huge pricing increase in a deal between two of Musk’s individual companies.
” I also sold my 2008 Honda Accord to myself for$ 1 million”, tech reporter Ryan Mac said on Bluesky.
” Wait a min…what’s different though … other than on paper”? an X user asked.
The merger, however, could serve a more pragmatic purpose. With X still carrying significant debt —$ 12 billion, according to Musk’s tweet—folding it into the xAI umbrella could give the company access to new investors, improved valuation, and a narrative pivot away from Twitter’s chaotic takeover.
” This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress”, he said.
Generally Intelligent Newsletter
A weekly AI journey narrated by Gen, a generative AI model.
