In January, Musk admitted that X is facing serious financial challenges, calling the company's revenue situation “very dire.”
Elon Musk Sells X to xAI in a $33 Billion All-Stock Deal, Latest News: Elon Musk announced late on Friday that he has sold X (formerly Twitter) to his own xAI artificial intelligence company in an all-stock deal valued at $33 billion.
The billionaire shared the news on X, stating, “@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).”
Speaking about the future of both companies, Musk shared his vision: “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 capabilities and expertise with X’s massive reach. 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. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”
X’s Chief Executive Linda Yaccarino also commented on the deal, posting on X, “The future could not be brighter.”
Elon Musk acquired Twitter in October 2022 for $44 billion and rebranded it as X in July 2023. Following the acquisition, he fired over 50% of the company’s global staff, removed legacy blue checkmarks, introduced paid verification, and relaxed content moderation policies.
In an email to employees in January, Musk reportedly admitted that X is facing serious financial challenges, calling the company's revenue situation “very dire.”
“We’ve witnessed the power of X in shaping national conversations and outcomes,” Musk said. However, he acknowledged the platform’s struggles, stating, “Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even.”
Despite introducing subscription models and cost-cutting measures, X continues to face advertiser pullbacks and financial instability.
As part of its transformation, X has been integrating AI features and is expected to work closely with xAI's Grok chatbot.
xAI was founded by Musk in July 2023 to compete with OpenAI, Google DeepMind, and Anthropic in the artificial intelligence space. The company developed Grok, an AI chatbot designed to provide "edgy and real-time" responses compared to competitors.
xAI’s broader mission is to develop AI that understands "the true nature of the universe" rather than focusing solely on commercial applications.
With the $33 billion X-xAI deal, xAI is now set to leverage X’s massive data pool and user base, potentially accelerating its AI advancements.
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