Elon Musk announced Friday that it sold social media site X to his own AI startup Xai in a $33 billion all-stock deal
The tech billionaire shared the news in a statement posted to X, saying, “The future of Xai and X is intertwined. Today, we have officially taken a step towards combining data, models, calculation, distribution and talent.”
“This combination unlocks immense possibilities by blending Xai’s advanced AI capabilities and expertise with X’s big reach,” Musk, 53, wrote in his presentation.
“The total company provides a smarter and more meaningful experience for billions of people, while still remaining true to our core mission of moving forward with knowledge for the truth,” he added.
Musk said the merger with X will “enable to build a platform that not only reflects the world, but also actively accelerates human progress.”
Both X and XAI are private so there is no need to make your finances public.
Tesla and SpaceX CEOs said the deal is valued at $80 billion for Xai and $33 billion for X.
It is not clear whether the sale will change anything for X users. XAI already trains artificial intelligence models using data from X-user submissions, and X-user payments can access Grok, an AI chatbot.
Musk bought X, known as Twitter for $44 billion in 2022, disrupting staff, changing its policies on hate speech, misinformation and user verification, and changing X.
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“Free speech is the foundation of a functional democracy, and Twitter is a digital town square where issues essential to humanity’s future are discussed,” Musk said in a press release at the time.
A year later, Musk launched Xai, saying, “it has rapidly become one of the world’s leading AI labs to build models and data centers at unprecedented speeds and scale.”
In March 2023, Musk founded the artificial intelligence company Xai and competed with Openai, the maker of ChatGpt.
The San Francisco Gulf region focused on the startup has hired a group of top AI researchers who previously worked at Openai, Google, Microsoft and Tesla.
Musk was the co-founder and early funder of Openai, who said goodbye to the San Francisco-based lab a few years ago. He has become increasingly critical of Openai as he achieved global prominence and commercial success with the release of ChatGPT last year, solidifying his financial relationship with Microsoft.
In April 2023, Musk told Fox News host Tucker Carlson that Openai’s popular chatbot has a liberal bias and is planning an alternative to “an AI seeking the greatest truth that seeks to understand the nature of the universe.”
He said he plans to create an alternative to the popular AI chatbot chat Gpt, which he called “TruthGpt.”
Musk said the idea is that AIs who want to understand humanity are unlikely to destroy it. He also said he was worried that ChatGpt was “trained to be politically correct.”
Musk also advocated for restrictions on artificial intelligence, saying he is a “big fan.” He called AI “more dangerous” than cars and rockets, and said it could destroy humanity.
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More recently, Musk said it would waive a $97.4 billion offer to buy the nonprofit behind Openai if ChatGpt makers remove plans to convert to commercial companies.
“If the board of directors of Openai, Inc. is ready to maintain the mission of the charity and provide for registration of “sale” by halting conversions, Musk said in a February 10 application to California Court of Justice.
“If not, the charity must be compensated by what the length of the weapon buyer pays for the asset.”
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Musk and the investor group made their offer at the beginning of February, adding their latest twist to a controversy with an artificial intelligence company he found 10 years ago.
Openai is managed by a non-profit committee bound by its original mission to safely build AI that is superior to humans for the public interest. It is currently a rapidly growing business, and last year announced plans to officially change its corporate structure.
Musk and his own consortium of AI startups, Xai and investment companies want to gain control over a nonprofit organization, the Openai subsidiary of the for-profit organization.
Openai CEO Sam Altman immediately rejected unsolicited bids in a social media post, writing, “Thank you, but I’ll buy Twitter if necessary for $9.74 billion.”
He also worked on the bid at the AI Action Summit in Paris in February, saying, “Openai is not on sale, Openai mission is not on sale.”
“Elon has been trying all sorts of things for a long time. This is this week’s episode. I think he’s probably just trying to slow us down,” Altman said of the mask.
“He’s clearly a competitor. He’s working hard, he’s collecting a lot of money for Xai, and they’re trying to compete. I hope he competes by building a better product, but I think there were a lot of tactics.”
– Includes files from Associated Press
&Copy 2025 Global News, a division of Corus Entertainment Inc.
