Elon Musk’s xAI Acquires X in $33 Billion Deal to Revolutionize AI and Social Media

Elon Musk’s xAI has made headlines with its recent acquisition of X, the social media platform formerly Twitter, in a deal valued at $33 billion. This all-stock transaction, announced on March 28, 2025, merges two of Musk’s prominent ventures and is expected to streamline his efforts in developing the AI model known as Grok.

The deal’s total valuation, including $12 billion in liabilities, reaches $45 billion, a figure that analysts note is strategically chosen to reflect Musk’s previous acquisition of Twitter in 2022. 

In a post on X, Musk stated that the merger would create a combined entity valued at $80 billion. He emphasized the interconnected futures of xAI and X, asserting that the integration would unify data, models, computing power, distribution, and talent. 

“Today we officially take steps to unify our resources,” Musk remarked, highlighting the potential for enhanced user experiences through this consolidation. 

The acquisition marks a significant shift for X, which has undergone substantial changes since Musk’s takeover in 2022. Initially acquired for $44 billion, the platform has faced challenges including workforce reductions and ongoing modifications to its operational strategies. 

These changes have reportedly led to a decline in value and investor confidence. Analysts suggest that this latest move could be seen as Musk consolidating his influence across his business interests while also addressing the operational inefficiencies that have plagued X since its rebranding. 

Investor reactions to the acquisition have been mixed. While some view it as a strategic alignment of Musk’s interest in AI and social media, others express concerns over the lack of clarity regarding investor compensation and approval processes for the deal. Spokespersons from both xAI and X have yet to comment on these uncertainties. 

Musk’s vision for the future of X includes leveraging its vast user base—over 600 million active users—to create a more efficient and impactful platform. He described X as “one of the most efficient companies in the world.” This merger will enhance its capabilities in delivering real-time information and fostering user engagement. 

As xAI continues to develop Grok, which has been integrated into X’s functionalities, allowing users to query it directly through posts, this acquisition could further solidify xAI’s position as a leading player in the AI landscape. It is anticipated to drive innovations that enhance transparency and user experience on social media platforms. 

This acquisition represents not only a financial maneuver but also a broader strategy by Musk to intertwine his ventures in technology and social media. It is reshaping the landscape of both industries as they evolve together.