Elon Musk’s xAI acquires X for $33 billion in all-share deal

Tesla CEO Elon Musk announced on Saturday that his artificial intelligence firm, xAI, has acquired X (formerly Twitter) in an all-stock transaction valued at $33 billion.

He shared the news on X and stated, “The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).”

This deal allows his co-investors in the social media platform, including venture firms Andreessen Horowitz and Sequoia Capital, to share in the value of xAI.


Musk added, “xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent.”


He further stated, “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”

X’s chief executive Linda Yaccarino also posted on X, saying, “The future could not be brighter.”

Musk acquired X in October 2022 for $44 billion after nearly six months of public and legal wrangling over the deal. Following the acquisition, he fired over 50% of X’s global staff, including many in India.

In January, Musk told employees in an email that since acquiring X, the company has faced “a very dire situation from a revenue standpoint.”

He said, “We’ve witnessed the power of X in shaping national conversations and outcomes,” but admitted, “Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even.”

According to The New York Times, X’s financial outlook has declined since it was taken over by Musk, in contrast to xAI, which has experienced rapid growth. In December, xAI raised $6 billion from investors like BlackRock, Nvidia, and AMD, valuing the company at $35 billion to $40 billion—up from $24 billion in May 2024.

On Thursday, the Hurun Global Rich List 2025 revealed Musk as the richest person in the world for the fourth time in five years, with a net worth of $420 billion, largely driven by a surge in Tesla’s share price following the Trump election.