Elon Musk sells X for $33 billion to his own startup xAI

Elon Musk’s artificial intelligence company, xAI, has officially acquired his social media platform X, formerly known as Twitter, in a deal valued at $33 billion (€30.5 billion).

Musk announced the transaction in a post on X, stating, “The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).”

He emphasized the strategic importance of the acquisition, saying, “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 specific details of the deal remain unclear, as both companies are privately held and not required to disclose financial information. It is also uncertain whether the acquisition will lead to any immediate changes for X users.

Musk originally bought Twitter in 2022 for $44 billion, later renaming it X. His leadership saw drastic changes, including mass layoffs, a shift in content moderation policies, and new user verification rules. These changes led to an advertiser exodus and a significant drop in revenue.