Billionaire entrepreneur Elon Musk has officially sold X (formerly Twitter) to his artificial intelligence startup, xAI, in a deal valued at $33 billion. The transaction, structured as an all-stock deal, marks a significant shift in Musk’s business strategy, integrating the AI capabilities of xAI with the vast social media platform of X.
Musk announced the move in a post on X, stating that the merger would create new synergies between AI and social media, allowing for smarter interactions, enhanced user experiences, and improved content moderation through AI-driven innovations.
"By combining xAI's advanced artificial intelligence with X's massive reach, we are unlocking immense potential," Musk said.
xAI, founded by Musk in 2023, has been developing Grok, an AI chatbot integrated into X. The acquisition is expected to accelerate AI-driven features on X, making the platform more interactive and intuitive for users.
The deal also significantly boosts xAI’s valuation, now estimated at $80 billion. Investors in both X and xAI include Andreessen Horowitz, Sequoia Capital, Fidelity Management, Vy Capital, and Saudi Arabia’s Kingdom Holding Co.
Industry experts believe this acquisition could redefine the role of social media in AI development, as Musk aims to create a more intelligent and autonomous digital ecosystem. While the exact implications for X’s users remain unclear, the integration of AI tools is expected to enhance content recommendations, advertising strategies, and security measures against misinformation.