Elon Musk has sold social media site X to his own xAI artificial intelligence company in a $33 billion all-stock deal, the billionaire announced on Friday
Elon Musk has sold social media site X to his own xAI artificial intelligence company in a $33 billion all-stock deal, the billionaire announced on Friday.
Both companies are privately held, which means they are not required to disclose their finances to the public.
Musk said in a post on X that the move will “unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.” He said the deal values xAI at $80 billion and X at $33 billion. Musk, who serves as CEO of Tesla and SpaceX as well as an advisor to President Donald Trump, bought the site then called Twitter for $44 billion in 2022, gutted its staff and changed its policies on hate speech, misinformation and user verification and renamed it X.
He launched xAI a year later.
“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 wrote on X. “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.”
It’s not clear if the move will change anything for X users — xAI already uses data from X user posts to train its artificial intelligence models and paying X users have access to its AI chatbot, Grok.
Elon Musk Sells X to xAI in a $33 Billion All-Stock Deal, Shaking Up the Tech Industry
In a surprising yet bold move, Elon Musk has sold the social media platform X (formerly Twitter) to his own artificial intelligence company, xAI, in an all-stock deal valued at $33 billion. This transaction has sent shockwaves through the tech industry, raising questions about the future of X and Musk’s AI ambitions.
A Game-Changing Deal
According to sources close to the matter, this deal aims to integrate advanced AI technology into X, transforming it into a more intelligent and automated communication platform. xAI, the AI company founded by Musk in 2023, is developing cutting-edge AI models to compete directly with OpenAI and Google DeepMind.
Selling X to xAI may seem unexpected, but it aligns with Musk’s strategic vision of merging social media with AI to create a radically different communication ecosystem. “X will no longer be just a social media platform; it will become an AI-powered interactive hub that understands and responds more intelligently to users,” Musk announced on X after the deal was made public.
Elon Musk’s Vision for X and xAI
Musk has long expressed his desire to turn X into an “everything app,” similar to China’s WeChat. With AI integration, X could offer features like smart chatbots, automated content creation, personalized user experiences, and even AI-driven financial transactions.
By transferring X under xAI’s ownership, Musk gains more freedom to develop AI-driven features without being restricted by shareholders or traditional social media regulations. This means users can expect groundbreaking changes in the near future.
Impact on Users and the Tech Industry
While this deal could propel X into a new era of AI-powered social media, it also raises concerns about privacy and information control. AI’s deep involvement in social interactions could increase the risk of misinformation manipulation or reduce transparency in content algorithms.
Additionally, this move signals Musk’s deeper commitment to AI, positioning him as a direct competitor to major tech giants like OpenAI, Meta, Google, and Microsoft. If xAI successfully integrates AI into X, it could set a new standard for the future of social media in the AI age.
What’s Next for X Under xAI?
With X now under xAI’s control, users can anticipate significant transformations in the platform’s interface, features, and functionality. Potential developments include:
AI-generated posts and personalized content recommendations based on user preferences.
AI-powered chatbots enhancing online conversations.
More sophisticated automated content moderation, potentially reducing misinformation but also sparking debates over free speech.
AI-driven financial services, turning X into an intelligent marketplace and payment hub.
While many questions remain unanswered, one thing is clear: Musk is preparing X for a revolutionary transformation. This deal is not just about reshaping social media but also laying the foundation for a new generation of AI-driven interactions in the digital world.
Time will tell whether this is a brilliant strategic move or a risky gamble, but one thing is certain—Musk continues to redefine the tech landscape.
