Elon Musk’s xAI acquires X in all-stock deal worth $113 billion, valuing the combined company at $113 billion

In a move that has sent shockwaves through the tech world and beyond, Elon Musk’s artificial intelligence startup, xAI, has acquired X Corp (formerly known as Twitter) for $33 billion in an all-stock deal with debt included.

The transaction, announced late Friday night, puts xAI’s valuation at $80 billion and the combined company at $113 billion, positioning them to leverage their data, models, and talent. The deal ties together two of Musk’s most talked-about ventures in what could mark a turning point for both AI and social media.

xAI Acquires X (formerly Twitter) for $113 Billion

Musk confirmed the news directly on the platform itself:

“@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).”

@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

Since launching in 2023, xAI has quickly established itself as a major force in artificial intelligence, developing large-scale models and infrastructure at a pace few can match.

“X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth,” Musk added in a post on X

According to Musk, the future of xAI and X are deeply connected and the merger marks the formal move to combine data, models, compute resources, distribution channels, and talent across both companies. He believes this integration will open up significant opportunities by pairing xAI’s AI expertise with X’s massive reach, ultimately leading to more intelligent and relevant user experiences—while sticking to their shared goal of pursuing truth and expanding knowledge.

Musk’s Ecosystem Just Got Tighter

The merger brings together xAI’s growing AI toolkit with the global scale of X Corp’s user base. Since its rebrand from Twitter in 2023, X Corp has been Musk’s attempt to transform a traditional social media platform into something broader—an “everything app.” Now, as part of xAI, the experimental AI firm gains access to a massive audience and one of the largest public datasets on the internet.

Founded in 2023 with the mission to ‘understand the true nature of the universe,’ xAI has quickly made a name for itself. Its Grok AI assistant has already captured attention, and the company’s mission to accelerate scientific discovery through AI has resonated with both investors and the broader tech community. With this deal, xAI not only scales its operations but also secures a real-world testbed to deploy its technology in front of everyday users.

The acquisition—made entirely through stock—reflects Musk’s confidence in the long-term potential of the combined entity. It positions xAI as one of the most valuable AI startups in the world, a remarkable feat for a company less than two years old. At the same time, X Corp’s $33 billion valuation signals that, despite past turbulence, the platform continues to hold strategic value in Musk’s broader vision.

A High-Stakes Bet

This is a significant move—even by Musk standards. It fuses two of his most ambitious ventures: xAI, which is just two years old and already one of the most talked-about AI startups, and X Corp, the social platform he took over and rebranded after acquiring Twitter in 2022. Musk sees them not as separate entities but as complementary tools in his broader push to reshape tech.

xAI has built momentum fast. Its conversational AI assistant, Grok, is already live, and the company has been building out infrastructure at speed. This acquisition now puts a social layer on top of that foundation—giving xAI access to a global user base of over 600 million people, plus a mountain of real-time data.

The structure of the deal—a full stock swap—sends a strong signal that Musk is thinking long-term. He’s not cashing out. He’s doubling down.

What Changes for Users and the Industry

For the tech world, this is more than just a headline. The deal blurs the line between AI research and public platforms. Analysts are already speculating about what it could mean: smarter content moderation, better ad systems, or AI-powered tools layered into the user experience. Musk’s Grok assistant could soon show up on X to help users sort through posts or verify claims—something Musk has repeatedly hinted at.

This merger could turn X into more than just a social feed. With xAI’s resources behind it, the platform could begin to function more like an intelligent assistant—a place where conversations are guided, verified, and possibly even generated with help from AI.

Still, questions are flying. The main one: What happens to user data? X Corp’s enormous archive of real-time conversation is a goldmine for machine learning models. But tapping into that data will likely stir privacy concerns and regulatory attention—especially with Musk’s reputation for pushing limits.

A Longtime Obsession with “X”

This deal marks another chapter in Musk’s long-standing relationship with the letter “X.” His obsession with the letter “X” spans decades—from founding X.com (later PayPal) to launching SpaceX and rebranding Twitter as X. Through these ventures, Musk has steadily built toward a unified digital presence.

Now, by bringing X Corp under the xAI umbrella, he controls a platform that blends mass communication with experimental AI. For xAI, it’s a major leap—from a research-driven startup to a company directly influencing the online behavior of hundreds of millions. For X Corp, it’s yet another pivot—this time under the direction of a firm built around innovation through artificial intelligence.

There’s still no word on exactly how the integration will unfold. But if Musk follows his usual playbook, expect bold moves, breakneck timelines, and plenty of debate. This story is far from over.

What’s Next?

No detailed roadmap has been shared yet, but a few things seem likely. xAI will almost certainly find ways to integrate Grok into X. Whether that’s helping people find trustworthy info, flagging misinformation, or improving how users interact with content, the potential use cases are wide open.

There’s also the business side to consider. With ad revenue no longer the only north star for X, we might see new subscription products or AI-powered services introduced. The combination of AI, real-time data, and massive distribution is rare—and Musk now owns all three.

But not everyone is applauding just yet.

Questions around data privacy are already being raised. Bringing AI deeper into a social platform with this kind of reach is bound to attract regulatory interest. And Musk’s all-in approach—seen across Tesla, SpaceX, and Neuralink—means the integrations may move quickly, whether or not the public is fully on board.

The Big Picture

For xAI, this is a fast-track way to become more than just an AI lab. It’s now a consumer-facing company, whether it’s ready or not. For X Corp, this is a shot at reinvention—transforming from a legacy social network into something that blends communication and intelligence in new ways.

Nobody knows exactly how this plays out. But one thing’s for sure: the tech world is watching closely. Musk just put another big piece of his long-term vision into place—and it’s only a matter of time before the next one drops.