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In a dramatic development, Elon Musk has just announced the merger of two of his major companies, with his AI-focused enterprise xAI now acquiring his social media platform X in an all-stock deal.
@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).
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…
— Elon Musk (@elonmusk) March 28, 2025
To wit, Elon Musk has just announced that xAI has formally acquired X in an all-stock deal that values his AI-focused enterprise at $80 billion and his social media platform at $33 billion inclusive of $12 billion in liabilities. This means that the deal bestows a gross valuation of $45 billion on X before factoring in its debt load of $12 billion.
Elon Musk went on to note:
“This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
Bear in mind that Elon Musk took X (then called Twitter) private back in 2022 in a $44 billion deal. Since then, Musk has managed to stem X’s cash bleed, with the company reportedly generating $1.2 billion in adjusted EBITDA in 2024.
However, despite boasting of a user base of 600 million users, X has continued to languish under a perennial cloud of uncertainty, largely due to the continued hesitation of big-ticket advertisers to spend ad dollars on the platform.
In contrast, xAI is rapidly scaling the ladder of commercial success, with its Grok LLM largely comparible with OpenAI’s cutting-edge models. xAI currently boasts of a mega cluster of around 200,000 NVIDIA H100 GPUs under the banner of the Colossus super computer.
Bear in mind that xAI and NVIDIA were able to bring the Colossus online in just 122 days when it would ordinarily take “many months to years” to operationalize such an intricate system. What’s more, xAI was able to commence the training of its Grok LLM within 19 days of the first H100 GPU rack rolling onto the floor of its AI gigafactory.
Of course, the merger of X and xAI paves the way for Elon Musk to realize his long-standing dream of creating his own super app.
