India Business Journal - Elon Musk sells X to group company xAI in a $33-billion, all-stock deal

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Elon Musk sells X to group company xAI in a $33-billion, all-stock deal

IBJ Bureau
Mar 30, 2025

Elon Musk has transferred ownership of social media platform X to his artificial intelligence company, xAI, in an all-stock deal valued at $33 billion, the billionaire announced on Friday.

Since both the companies are privately owned, they do not have to reveal their financial details to the public.

Mr Musk said in a post on X that this move will “unlock immense potential” by combining xAI’s artificial intelligence expertise with X’s wide user base. According to him, the deal values xAI at $80 billion and X at $33 billion.

Mr Musk, who also leads Tesla and SpaceX and serves as an adviser to US President Donald Trump, had originally bought Twitter for $44 billion in 2022. He later rebranded it as X, reduced its workforce and changed its rules on content moderation, misinformation and user verification. A year after acquiring X, he launched xAI.

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

He added that merging the two companies will create “smarter, more meaningful experiences” for billions of people, while staying focused on the goal of “seeking truth and advancing knowledge.”