Elon Musk’s $113 Billion Merger: xAI and X Unite to Create AI-Powered “Everything App”
Staff Editor Elon Musk Announces Merger of xAI and X in Landmark Deal
In a surprising move, tech mogul Elon Musk has announced the acquisition of social media platform X, formerly known as Twitter, by his artificial intelligence company xAI. The all-stock transaction values xAI at $80 billion and X at $33 billion, including $12 billion in debt.
Musk emphasized the potential synergies between xAI’s advanced AI capabilities and X’s extensive user base. X CEO Linda Yaccarino expressed optimism about the deal, despite the platform’s $11 billion loss in value since Musk’s takeover in 2022.
The merger aligns with Musk’s vision of creating an “everything app” by integrating xAI’s tools with X. This integration has already begun with the launch of xAI’s Grok tool on X and its recent expansion to Telegram. The move echoes Musk’s previous company integrations, such as Tesla and SolarCity.
Notably absent from the announcement was any mention of Tesla, Musk’s electric vehicle company. This omission comes in the wake of Musk’s previous statements about managing multiple roles across his various ventures.
The deal’s financial implications are significant, with X’s valuation fluctuating since Musk’s 2022 takeover. Meanwhile, xAI’s valuation has soared from $24 billion to $50 billion in recent investment rounds, reflecting the growing value of AI companies in the current market.
Musk described X as the “digital town square” with over 600 million active users. He highlighted the strategic combination of data, models, compute, distribution, and talent from both companies as key to delivering smarter experiences and advancing knowledge.
As the tech world digests this unexpected merger, all eyes will be on how Musk plans to leverage this new powerhouse to reshape the digital landscape.
