Elon Musk Sells X to xAI in $33 Billion All-Stock Deal

Photo : Instagram / @culturecutbusiness

Elon Musk has sold his social media company X to his own artificial intelligence (AI) company, xAI. The deal is worth $33 billion and was announced on Friday. Musk said this step will help bring together the power of AI and social media to create something better and smarter.

Both X and xAI are private companies, so they do not have to share their money details with the public. But Musk said that xAI is worth $80 billion and X is worth $33 billion. He believes that xAI’s smart technology and X’s large number of users will work well together.

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Musk bought X in 2022 when it was called Twitter, paying $44 billion for it. After buying it, he removed many workers, changed important rules, and gave Twitter a new name, X. Now, he has decided to join it with xAI to make it even stronger.

Musk wrote on X: “xAI and X will now work as one. Today, we take an important step to mix our knowledge, computer power, and people. This will help us create new and powerful things by using xAI’s smart technology with X’s large reach.”

He also said that the goal of this new company is to give "better and smarter experiences" to people around the world while still following the idea of "finding truth and spreading knowledge."

Right now, it is not clear if this change will affect normal users on X. xAI already uses X’s posts to train its AI models, and people who pay for X’s premium service can already use xAI’s chatbot, Grok. But this new deal may mean that AI will become an even bigger part of X in the future.

Musk is also the CEO of Tesla and SpaceX and has been working on AI for a long time. By joining X and xAI, he wants to make X more than just a social media app. He hopes to turn it into a smart platform that can do many new things with AI.