Elon Musk’s AI Company xAI Buys Elon Musk’s Social Media Platform X

Elon Musk announced Friday that his company xAI is buying X, the social media platform formerly known as Twitter, in an all-stock deal. The transaction values xAI at $80 billion and X at $33 billion, according to CNBC.

“xAI has acquired X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt),” Musk tweeted Friday evening. 

Musk purchased Twitter in October 2022 for about $44 billion, changing the name of the company to X, and founded xAI just five months later as an artificial intelligence company. Musk’s tweet announcing the sale called X the “real-time source of ground truth” for 600 million active users globally.

In reality, Musk’s changes to Twitter have transformed it into a hotbed of far-right extremism, where neo-Nazis and conspiracy theorists who were once banned—from Nick Fuentes to Alex Jones—have been welcomed back with open arms. Musk had previously said he wouldn’t reinstate Jones, who had been banned in 2018, but apparently changed his mind about a year after buying the site.

Musk clearly sees an opportunity for his social media company and AI companies to grow better together, perhaps because the X brand has become so toxic to normal people. Traffic at X reportedly plummeted after the 2024 presidential election.

“xAI and X’s futures are intertwined. 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,” Musk’s tweet reads.

Musk’s tweet really tried to stress that his companies are all about “truth,” something contradicted by his frequent lies and obfuscations about his activities with DOGE. Just yesterday, Musk said that he was going to give people on Social Security more money, something he has absolutely no authority to do.

“The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge,” Musk’s tweet reads. “This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”

Musk closed his tweet by using one of his favorite words, “hardcore,” to thank the staff at both companies.

“I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning. Thank you for your continued partnership and support,” Musk wrote.