Elon Musk announced Friday that X has been acquired by xAI, the artificial intelligence company also owned by Musk.
Musk noted that X was acquired “in an all-stock transaction” and that the consequent combination of the two companies “values xAI at $80 billion and X at $33 billion ($45B less $12B debt).”
As noted by Zero Hedge, “The transaction is structured as a stock swap, with X investors receiving xAI shares in return. Both companies share overlapping investors, including Fidelity Management, Saudi Arabia’s Kingdom Holding Co, Andreessen Horowitz, Sequoia Capital, and Vy Capital.”
The report further notes that “the move also eliminates the risk of Musk undergoing a forced liquidation of the $12.5 billion margin loan backed by his Tesla shares.”
“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 unprecedented speed and scale,” Musk wrote.
@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).
— Elon Musk (@elonmusk) March 28, 2025
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…
xAI is the company that built Grok, the AI that is integrated into X.
In February, xAI announced the Grok 3 Beta, touted as “our most advanced model yet, blending superior reasoning with extensive pretraining knowledge.”
Musk added that X is the de facto “digital town square” where more than 600 million 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.”
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,” the statement continued.
“This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach,” Musk further wrote.
“The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress,” he added.
“This is just the beginning,” Musk concluded.
Elon has long said that he plans to make X the ‘everything app’.
Already imminent is X Money, a new payment system announced by designed to transform the social media platform into a multifaceted platform by integrating financial transactions. It aims to enable peer-to-peer (P2P) payments, allowing users to send and receive money directly within the X ecosystem, potentially alongside features like digital wallets and Visa-backed real-time transfers.
While specifics remain limited, it aligns with Elon Musk’s vision to emulate platforms like WeChat, possibly incorporating cryptocurrency options such as Bitcoin or Dogecoin, though this remains unconfirmed.
X CEO Linda Yaccarino has stated that X Money is set to launch in 2025, with X Payments LLC already securing money transmitter licenses in numerous U.S. states to support its rollout, though an exact date within the year has not been specified.
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