March 29, 2025 – Elon Musk’s artificial intelligence company, xAI, has purchased his social media platform X (formerly Twitter) in a deal worth $33 billion. The move aims to bring artificial intelligence (AI) and social media closer together.
What Happened?
Elon Musk founded xAI in 2023 to develop advanced AI technologies. Now, the company has officially acquired X, the social media platform Musk bought in 2022 for $44 billion.
Even though Musk initially purchased Twitter for more money, its value has dropped since then. As part of this deal, xAI has taken over X’s $12 billion in debt.
Why Did Elon Musk Merge xAI with X?
Musk believes that AI and social media should work together. By merging the two companies, xAI can use the real-time data from X to improve its AI models. Musk stated that the future of both companies is “intertwined.”
His AI chatbot Grok, which is already available on X, is expected to become even more powerful. The deal could lead to more AI-driven features on the platform, such as better content recommendations, automated moderation, and improved chatbot interactions.
How Was the Deal Structured & impact on X’s Leadership and Employees?
The acquisition was an all-stock deal, meaning no cash was exchanged. Instead, the ownership structure of the two companies was adjusted. The deal values xAI at $80 billion and X at $33 billion.
Currently, Linda Yaccarino is the CEO of X, but it is unclear whether she will continue in her role. The integration of xAI could lead to changes in leadership and company operations. Employees at X may also see shifts in their roles as the company focuses more on AI development.
What’s Next for X and xAI?
This merger means that X will likely become an AI-powered platform. Future changes may include:
More AI-driven content recommendations
Smarter chatbots like Grok improving user interactions
Better moderation tools to detect harmful content
AI-powered business and financial tools
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