Elon Musk’s Xai acquired X in a deal that valued the social media platform at $33 billion and allowed him to share the value of his artificial intelligence company with co-investors of the company previously known as Twitter.
This deal also helps Xai’s ability to train a chatbot known as Grok.
“The future of Xai and X is intertwined,” Musk, who leads automakers Tesla and SpaceX, wrote in X’s post:
He said the combination valued “Xai at $80 billion and X at $33 billion ($12 billion less).”
Representatives of X and Xai did not immediately respond to requests for comment. Many details of the transaction, such as how X’s leaders will be integrated into the new company or whether there will be regulatory scrutiny, remain unknown.
Musk, the richest person in the world, is also a close ally of US President Donald Trump and leads the government’s Office of Efficiency.
Refusing to be identified, Xai investors said they were not surprised by the deal, viewing it as a mask that integrates his leadership and management team in his own company.
Musk did not ask investors for approval, but the two companies are working closely together and told them that the deal would promote deeper integration with Grok, investors said.
Openai’s rivalry
According to a media report, Musk’s Xai startup started two years ago and raised $10 billion in a funding round valued at $75 billion. It competes just like Microsoft-backed Openai and Chinese startup Deepseek.
In February, the 53-year-old Musk placed a $97.4 billion bid for Openai’s consortium. This month, the judge denied a demand for masks for preliminary injunctions that would prevent the conversion.
As AI competition grows, Xai is increasing the ability of its data centers to train more advanced models, and its supercomputer cluster in Memphis, Tennessee, called “Colossus,” is touted as the largest in the world.
Xai introduced Grok-3, the latest iteration of chatbots in February.
The X platform provides real-time feeds of user meditation, screenshots and other data, and helps you distribute your Xai products further.
After purchasing Twitter, Musk stumbled the company’s workforce, urging advertisers to flee the platform and to rapidly decline in revenue. Recently, as mask influence in the Trump administration grew, the brand has returned to X.
According to sources familiar with the transaction, the bank that extended its $13 billion loan to XK to buy X to buy X, maintained its book debt for two years to buy X and two years to buy X.
This was possible after, among other factors, surged interest in exposure to AI companies, along with improved X’s operational performance over the previous two quarters, along with surge in interest from investors in their exposure to AI companies.
Investors who purchased debts from banks after the merger will make a profit, said Espen Robak, founder of Pluris Aluation Advisors, which specializes in non-current assets. “It’s true, even if it’s not fully paid off, debt is more valuable now.”
Separately, a US judge on Friday declined a bid by mask to dismiss a lawsuit alleging that he had fraudulent former Twitter shareholders after waiting too long to disclose his initial investment in the company.
