Elon Musk has sold the social media platform X (formerly Twitter) to his artificial intelligence company, xAI, in a $33 billion all-stock deal. The move marks a major step in integrating AI with social media, a vision Musk has long pursued.

Musk’s Vision for the X-xAI Merger
Announcing the sale on X, Musk emphasized that the merger would unlock immense potential by blending xAI’s advanced AI capabilities with X’s massive reach. He stated that the deal values xAI at $80 billion and X at $33 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 wrote.
He further added that the combined company would enhance digital experiences for billions while staying committed to truth-seeking and knowledge advancement.

What is xAI?
xAI is an AI company founded by Musk in March 2023. It was launched to explore the “true nature of the universe” and develop AI solutions for real-world challenges. The company operates as a public-benefit corporation headquartered in the San Francisco Bay Area.
xAI made headlines with the launch of its AI chatbot, Grok, in November 2023. The chatbot, later integrated into X, has gained popularity, especially in markets like India.
Musk’s AI Ambitions and the Future of X
Musk’s acquisition of X in 2022 for $44 billion led to major changes, including mass layoffs, policy shifts, and rebranding. By selling X to xAI, Musk is taking another bold step in redefining the platform’s future, positioning it as an AI-powered digital ecosystem.

While Musk remains the primary owner of xAI, details of other stakeholders remain undisclosed. However, the sale cements his renewed focus on AI, marking his return to the sector after his early involvement with OpenAI.
The merger signals a new era where AI and social media are deeply intertwined, and Musk believes it will revolutionize how people interact online.