In a debt consolidation of his tech services, X owner Elon Musk stated in a post on Friday that xAI, the designers of Grok, had actually obtained X (previously Twitter) in an all-stock deal. According to Musk, the merger worths xAI at $80 billion and X at $33 billion.
Musk purchased Twitter for $44 billion in April 2022. By October 2024, Fidelity Investments changed the evaluation of its stake in X, approximating the business’s total worth to be roughly $9.4 billion.
Though its evaluation had actually recuperated rather by December 2024, it was still down a massive 77% from Musk’s purchase cost. How Musk got to a $33 billion evaluation, simply put, would produce intriguing reading.
@xAI has actually obtained @X in an all-stock deal. The mix worths xAI at $80 billion and X at $33 billion ($ 45B less $12B financial obligation).
Considering that its founding 2 years earlier, xAI has actually quickly turned into one of the leading AI laboratories on the planet, developing designs and information centers at …
— Elon Musk (@elonmusk) March 28, 2025
Currently the head of numerous business, consisting of SpaceX and Tesla, Musk released xAI in July 2023, a year after acquiring Twitter. While he stated the objective of xAI was to “comprehend truth,” a continuous fight with previous company partner OpenAI CEO Sam Altman was likewise a driving element.
” Today, we formally take the action to integrate the information, designs, calculate, circulation, and skill. This mix will open tremendous capacity by mixing xAI’s innovative AI ability and proficiency with X’s enormous reach,” Musk composed on X Friday. “The combined business will provide smarter, more significant experiences to billions of individuals while remaining real to our core objective of looking for fact and advancing understanding.”
Calling X “the digital town square,” Musk stated the platform boasted over 600 million active users. Nevertheless, Meta, which released a competing social networks platform, Threads, in July 2023, and Bluesky, which released in February of that year, have actually been attempting to charm away users.
Bluesky’s user count went beyond 27.44 million users in January 2025, a lot of whom had actually left Twitter after Musk’s takeover. At the very same time, boosted by its connections to Facebook and Instagram, Threads had more than 320 million month-to-month active users since February 2025.
Musk made headings in July of in 2015 when it was exposed that Grok would be trained on X user information. The setting can be handicapped, however is on by default for user accounts.
Some social networks users mocked today’s statement, buffooning the obviously large evaluation increase in an offer in between 2 of Musk’s own business.
” I likewise offered my 2008 Honda Accord to myself for $1 million,” New York City Times tech press reporter Ryan Mac stated on Bluesky.
” Wait a minutes … what’s various though … besides on paper?” an X user asked.
The merger, nevertheless, might serve a more practical function. With X still bring substantial financial obligation–$ 12 billion, according to Musk’s tweet– folding it into the xAI umbrella might provide the business access to brand-new financiers, enhanced evaluation, and a narrative pivot far from Twitter’s disorderly takeover.
” This will permit us to develop a platform that does not simply show the world however actively speeds up human development,” he stated.
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