Posted on by Nathalie Tay
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Elon Musk Sells X to xAI in $45 Billion Deal
29 Mar
Elon Musk announced that he has sold X (formerly Twitter) to his AI company, xAI, for $45 billion, including $12 billion in debt.
This valuation places X at $33 billion. Musk stated that merging X and xAI will enhance AI capabilities and distribution, unlocking new potential.
Though no immediate changes to X were announced, xAI’s Grok chatbot is already integrated. Musk values the combined company at $80 billion.
Since acquiring X in 2022, Musk has made controversial changes, including mass layoffs and reinstating banned accounts, leading advertisers to leave.
However, brands like Amazon and Apple have recently returned, stabilizing X’s finances.
Musk’s growing influence in AI and politics is a key factor in X’s resurgence. He has been active in the Trump administration, raising concerns about his focus on Tesla.
His alignment with Trump has made X central to political discussions, increasing investor confidence. Despite past financial struggles, X’s valuation has rebounded, partly due to xAI’s rapid growth.
Musk’s role in government and AI suggests X will continue evolving as a platform that merges social media with AI technology, solidifying his dominance in both fields.
