On March 29, Elon Musk, CEO of Tesla and SpaceX, announced a major news on the X platform that his artificial intelligence company, xAI, will acquire the social platform X (formerly Twitter) he bought in 2022 through an all-stock transaction , with a transaction size of US$45 billion (about NT$1.49 trillion).
According to Musk's tweet, the transaction values xAI at $80 billion, while X's valuation is $33 billion ($45 billion minus $12 billion in debt), for a combined total valuation of $113 billion.
The move will combine xAI's AI technology with X's 600 million active users, helping xAI train its chatbot called Grok, and is expected to bring new breakthroughs in the technology and social fields.
Musk: The combination of xAI and X will accelerate human progress
xAI was founded in 2023 as a Musk competitor to OpenAI, and in just two years has become one of the world’s leading AI companies. Their recent Grok3 model has been hailed as the smartest AI on the planet, and their “Colossus” supercomputer is also considered the world’s largest. The company raised $10 billion in its latest Capital round at a $75 billion valuation this year, showing incredible growth.
X has seen significant valuation fluctuations and has faced a hit to its advertising business since Musk took over, but revenue has shown signs of improvement as some brands have returned. The Wall Street Journal reported that X recently closed a $900 million funding round, raising its valuation slightly above the $44 billion Musk paid in 2022.
Of the deal, Musk claimed that the combination will “advance human progress” by delivering smarter experiences to billions of people through AI.
The future of xAI and X are inextricably linked. Today, we are taking a major step toward combining data, models, compute, distribution, and talent. By combining xAI’s advanced AI capabilities and expertise with X’s broad reach, this combination will unleash enormous potential.
The combined company will deliver smarter and 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 not only reflects the world, but actively advances human progress.
This also fits closely with his long-term vision of turning X into an “Everything App” that includes payments, social, and AI services.
The combination with X is beneficial for Grok's development
An xAI investor told Reuters that they were not surprised by the transaction, XEM it as Musk’s way of strengthening his company’s leadership and management. The investor also noted that Musk did not seek investor approval, telling them that the two companies already worked closely together and that the transaction would facilitate deeper integration between X and Grok. In addition, xAI’s business would be easier to raise Capital after the merger.
The acquisition is XEM as a major step in integrating Musk's technology ecosystem, with its strong hold on AI development, massive user data, and global distribution channels, which will undoubtedly intensify competition in the global AI landscape.
