Elon Musk Acquires His Own Social Media Platform X Through xAI In $33 Billion Deal, Says Combined Entity Now Worth $113 Billion (CORRECTED)

Editor’s Note: This story has been updated to reflect the accurate combined valuation of X and xAI.

Elon Musk’s artificial intelligence startup xAI has acquired his social media company X, formerly Twitter, in an all-stock deal valued at $33 billion.

What Happened: On Friday, Musk announced that xAI had officially acquired X, with the deal valued at $45 billion, including $12 billion in existing debt.

Good job, guys 😂 https://t.co/9fx1i6Qjrc

— Elon Musk (@elonmusk) March 29, 2025

The move combines Musk's two high-profile ventures, linking xAI's rapidly developing AI model Grok with X's vast user data and content distribution network.

"xAI and X's futures are intertwined," Musk posted on X. "Today, we officially take the step to combine the data, models, compute, distribution and talent."

See Also: Ex-OpenAI Chief Scientist Ilya Sutskever’s AI Startup Valued At $30 Billion In Latest Funding Round: Report

@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).

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…

— Elon Musk (@elonmusk) March 28, 2025

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Why It's Important: The billionaire acquired Twitter in 2022 for $44 billion and rebranded it as X as part of a broader vision to transform it into an "everything app."

Some details of the deal remain unclear, including investor approval and the structure of shareholder compensation. Musk's xAI, launched in 2023, recently raised $6 billion at a $40 billion valuation and introduced Grok-3, a chatbot intended to rival OpenAI's ChatGPT.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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