In a landmark $33 billion all-stock deal, Elon Musk AI venture, xAI, has acquired X, the platform formerly known as Twitter.
The move marks a bold step toward fusing cutting-edge artificial intelligence with the global reach of social media.
With this move, Musk aims to combine xAI’s advanced AI technology with X’s global reach, unlocking new possibilities at the intersection of artificial intelligence and social media.
Announcing the acquisition, Musk stated, “xAI and X’s futures are intertwined.
This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
Strengthening Musk’s Long-Term Vision
The deal places xAI’s value at $80 billion, highlighting its strategic importance in Musk’s broader vision.
Since purchasing Twitter for $44 billion in 2022 and rebranding it as X, Musk has worked to transform the platform.
Now, by merging xAI and X, he seeks to accelerate human progress through AI-driven innovation.
Combining Resources For Innovation
Since its founding in 2023, xAI has developed advanced AI models like Grok and Aurora.
Through this merger, X will adopt xAI’s cutting-edge AI tools, while xAI will gain access to X’s extensive user base and real-time data, strengthening both companies.
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A Turning Point For X
Meanwhile, the acquisition marks a turning point for X. After Musk’s initial takeover, the platform’s value dropped significantly.
However, recent reports indicate that its valuation has returned to the original purchase price, suggesting that investors have regained confidence in Musk’s vision.
What’s Next For Users?
Although the specific changes for users remain uncertain, Musk plans to integrate xAI’s technology to deliver smarter, more personalised experiences.
Ultimately, this deal reinforces his commitment to advancing AI and embedding it into everyday digital platforms.
