Elon Musk has sold X (formerly Twitter) to his artificial intelligence business, xAI, for $33 billion (€30.5 billion) in an all-stock transaction.
This officially makes X and xAI subsidiaries of the same corporation, and Musk will look to embed AI further into the platform.
The deal puts the value of xAI at $80 billion (€74 billion) and X at $33 billion (€30.5 billion). Musk, however, explained that when including X’s $12 billion debt, its overall valuation is $45 billion. Since both firms are privately owned, they do not need to release financial information publicly.
Musk thinks that new opportunities will arise when xAI’s sophisticated AI skills are combined with X’s enormous user base and data. He called their futures “intertwined” and claimed that by utilizing X’s computational power and reach, the move will hasten the development of AI.
There are no immediate changes for X users. In addition to paying consumers to use its chatbot, Grok, xAI was already leveraging X’s data to train its AI models. But in the future, this union might result in X integrating AI more deeply.
Since xAI started in 2023, it has grown fast and become a strong competitor to OpenAI. Musk wants to lead the AI industry and is expanding xAI’s supercomputer, Colossus, to improve AI development.
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