Elon Musk’s AI platform xAI acquires social media platform X for $45 billion

Elon Musk stated on Friday that his xAI has acquired X, the social media app previously generally known as Twitter, in an all-stock transaction for USD 45 billion, together with USD 12 billion debt.

“xAI and X’s futures are intertwined. Right this moment, we formally take the step to mix the info, fashions, compute, distribution and expertise,” Musk stated in a publish on X, including that the mixed firm can be valued at USD 80 billion.

Neither X nor xAI instantly responded to a request for remark.

The billionaire’s AI startup, which was launched in 2023, lately raised USD 6 billion from traders in a funding spherical that valued the corporate at USD 40 billion, sources advised Reuters earlier.

Musk in February made a USD 97.4 billion bid with a consortium for the ChatGPT maker OpenAI, which was rejected, with OpenAI saying that the startup was not on the market.

As competitors in AI intensifies, xAI has been ramping up its knowledge centre capability to coach extra superior fashions, and its supercomputer cluster in Memphis, Tennessee, known as “Colossus”, is touted as the biggest on the earth.

xAI launched Grok-3, the newest iteration of its chatbot, in February, because it tries to compete with Chinese language AI agency DeepSeek and Microsoft-backed OpenAI.

Musk clinched a deal in 2022 to purchase X for USD 44 billion, ending its run as a public firm since its 2013 preliminary public providing, declaring that “the hen is freed” as soon as the acquisition closed.