Elon Musk Sells X To xAI In $45 Billion Deal

Elon Musk has announced that his artificial intelligence company, xAI, has purchased his social media platform, X.

The deal is worth $45 billion, slightly more than what Musk originally paid for the platform in 2022. However, the purchase includes $12 billion in debt.

Musk shared the news on X, revealing that the sale values X at $33 billion. He explained that this move will bring together the strengths of both companies.

“xAI and X’s futures are intertwined,” Musk said in a post. “Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”

Although Musk did not mention any immediate changes to X, he highlighted that xAI’s Grok chatbot is already integrated into the platform. He also stated that the combined company is valued at $80 billion and aims to “deliver smarter, more meaningful experiences.”

Since acquiring the platform in 2022, Musk has made major changes, including laying off 80% of the staff, altering the verification system, and reinstating previously banned accounts. These decisions led to an exodus of advertisers and a significant drop in the platform’s valuation.

Despite the decline, X’s worth has improved in recent months. In October, investment firm Fidelity estimated X had lost nearly 80% of its value. By December, the platform had recovered slightly, reaching about 30% of its original price tag.

This news comes as Musk faces scrutiny over his involvement with the Trump administration’s Department of Government Efficiency. Many have questioned whether he can effectively manage his various companies, particularly Tesla. By merging X with xAI, Musk could be looking for a way to streamline his workload.
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