Elon Musk Sells X for $33 Billion, Two Years After Buying It for $44 Billion
American entrepreneur Elon Musk had purchased the social media platform Twitter a few years ago and later rebranded it as ‘X.’ After taking over its management, Musk introduced several changes, including the introduction of a paid subscription for blue checkmarks. Now, Musk has sold X, but this time, the buyer is his own artificial intelligence company, xAI. The deal is valued at $33 billion, which translates to over ₹2.82 lakh crore in Indian currency.
Musk Announces the Sale on X
On Friday, Elon Musk announced, “Our artificial intelligence company, xAI, has acquired X in a $33 billion all-stock transaction.” In his X post, he further explained, “xAI has included X in an all-stock transaction. The combined valuation of xAI stands at $80 billion, while X is valued at $33 billion. The deal also includes $12 billion in debt, bringing X’s total valuation to $45 billion.”
Musk also shared that since its founding two years ago, xAI has rapidly grown into one of the world’s leading AI labs, developing models and data centers at an extraordinary scale and speed.
Benefits of the Merger
Musk emphasized that “the futures of xAI and X are deeply connected. Today, we are officially taking a step to merge data, models, computation, distribution, and talent.” This merger aims to leverage xAI’s AI capabilities alongside X’s extensive network, ultimately enhancing user experiences. The collaboration will offer better services to billions of people, with a core mission to discover truth and expand knowledge.
Strategic Move to Boost AI Chatbot Grok?
In 2023, xAI launched Grok, an AI chatbot integrated into X that provides real-time responses and participates in online discussions. Musk has positioned Grok as an alternative to “woke AI.” He noted that xAI’s advanced AI capabilities, combined with X’s user base of over 600 million, will deliver smarter and more meaningful experiences.
