Elon Musk just pulled an Elon Musk: he folded social media platform X (formerly Twitter) into his AI venture xAI, instantly creating a $113 billion tech behemoth in an all-stock deal announced Friday.
According to Musk’s post on X, the transaction values xAI at a cool $80 billion and X at $33 billion—a figure some might find eyebrow-raising given X’s estimated $9.4 billion valuation in late 2024 after Musk bought Twitter for $44 billion in April 2022. Adding a dash of intrigue, Musk himself noted X carries a hefty $12 billion debt.
For Musk, who juggles Tesla, SpaceX, and now this AI play, the move unifies “data, models, compute, distribution, and talent” under one roof. xAI, launched in July 2023 partly fueled by Musk’s rivalry with OpenAI’s Sam Altman, develops Grok AI, which, since last July, by default trains on the firehose of user data from X’s 600 million active accounts. This closed loop gives xAI a significant edge in training its models.
Musk claims the merger will deliver “smarter, more meaningful experiences” while pursuing “truth and advancing knowledge.” Cynics, however, weren’t shy about voicing doubts. Tech reporter Ryan Mac quipped on Bluesky about selling his own “2008 Honda Accord to myself for $1 million,” and users questioned the practical changes beyond a paper shuffling of valuations.
Pragmatists suggest the maneuver could be a strategic reset for debt-laden X, offering access to fresh investment and rebranding the platform beyond its tumultuous Twitter era. Whether it’s genius or financial engineering, Musk has once again ensured the tech world is watching his next move.