Elon Musk has finalized the sale of X, previously known as Twitter, to his artificial intelligence firm xAI in a $45 billion transaction. The deal includes $12 billion in debt, valuing X at $33 billion—slightly above recent estimates but still below Musk’s 2022 acquisition price of $44 billion.
The merger is set to create a platform that leverages xAI’s advanced artificial intelligence capabilities alongside X’s massive user base. Musk stated that combining AI expertise with X’s data will lead to more innovative and engaging experiences for users. Already, the Grok chatbot, developed by xAI, is being used to improve interactions on the platform.
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Despite financial challenges and advertiser exits, X has seen signs of recovery, with major brands like Amazon and Apple renewing their ad campaigns. Additionally, Musk’s political influence, bolstered by his role in the Trump administration, has helped X maintain its relevance as a hub for pro-Trump content, further driving investor confidence.
As xAI takes the reins, industry experts are watching closely to see how Musk’s AI ambitions will shape the future of social media and whether the platform’s financial comeback will continue.
