In a bold move that further blurs the lines between artificial intelligence and social media, Elon Musk’s AI company, xAI, has acquired X (formerly Twitter) for $33 billion, Musk announced late Friday, March 28, 2025. The all-stock deal merges two of Musk’s high-profile ventures, combining xAI’s rapidly growing AI capabilities with X’s 600 million–plus user base. Musk said the deal marks a strategic fusion of “data, models, compute, reach, and talent to make something huge.”
“Their futures are tied,” he wrote on X.
The deal values X at $45 billion, but $12 billion of that is debt from Musk’s 2022 leveraged buyout of Twitter. Subtracting that debt, the company’s equity is now pegged at $33 billion—less than the $44 billion Musk originally paid. Musk pegged xAI’s current valuation at $80 billion, a sharp climb from the $50 billion it reportedly reached after raising $6 billion last year. The deal required no cash—just share swaps between the two private companies, both largely controlled by Musk and his backers.
X CEO Linda Yaccarino reacted swiftly:
“The future couldn’t be brighter,” she posted.
Some users on X cheered the move, calling it a win for the platform’s algorithm and innovation. Others saw it as Musk tightening his grip, particularly as his political influence grows through his role in President Donald Trump’s new cost-cutting task force, DOGE. Critics voiced concerns about centralized power, while some users joked that combining companies shields Musk from attacks on Tesla or other ventures. One post said, “Now you can’t cancel Musk without canceling AI.”
Musk has already been integrating xAI and X behind the scenes. xAI’s chatbot, Grok, lives on X, engaging users with real-time answers and feeding on the platform’s endless stream of content. Founded in 2023, xAI’s mission is to “understand the universe,” but Grok is deeply focused on learning from human interaction—tweets, memes, debates, and images. Analysts say X is a perfect playground.
“It’s a smart move,” said Paolo Pescatore of PP Foresight. “AI’s hot, and X has the people.”
While the merger aligns two Musk-led firms, key details remain unclear. What happens to X’s remaining workforce? Will Yaccarino stay on as CEO? How will xAI balance privacy, bias, and ethics in such a data-rich environment? Both companies are private, giving Musk wide latitude. Investors like Sequoia Capital and Fidelity back both ventures, and could benefit from a combined equity structure, but no public disclosures are required.
Since Musk bought Twitter and rebranded it as X, the platform has endured layoffs, advertiser exits, and content moderation controversies. Banks who loaned him $13 billion to buy it struggled to sell the debt—until they offloaded it last month. Still, X appears to be rebounding as advertisers return and Musk’s political clout grows. Meanwhile, xAI is riding high, with its supercomputer project, Colossus, underway in Memphis and its rivalry with OpenAI (valued at $260 billion) heating up.
Musk hinted that the xAI–X merger will bring a smarter, faster, and more personalized user experience, including better feeds, chatbots, and spam control. Some expect it to push rivals like Meta into even deeper AI adoption. Others raise concerns about privacy, content control, and algorithmic bias.
“This is just the start,” Musk posted.
Whether it’s a masterstroke or a risky consolidation of power, the world is watching. And in Musk’s universe, that’s exactly where he wants the spotlight.