xAI acquires X, formerly Twitter in all-stock transaction confirms Elon Musk

As an Amazon Associate, we earn from qualifying purchases. TweakTown may also earn commissions from other affiliate partners at no extra cost to you.

Elon Musk has announced his AI startup company xAi has officially merged with X, the social media platform formerly known as Twitter in an all-stock transaction that puts the value of the social platform at $33 billion.

Musk announced the news via his personal X account, where he said the merger values the social media platform, or as he describes the digital town square for the world, at $33 billion ($45B less $12B debt), slightly less than the $44 billion he paid for it in 2022.

Additionally, the merger has valued xAI at $80 billion, with Musk saying the future of both companies is "intertwined," and now that the merger has taken place, "We officially take the step to combine the data, models, compute, distribution and talent."

CNBC reports that since Musk privately owns both companies, the transaction likely involved a stock swap, which involved X investors getting paid out in xAI shares. Musk wrote in the announcement that the combination of both companies would "unlock immense potential by blending xAI's advanced AI capability and expertise with X's massive reach."

Furthermore, Tesla's CEO wrote that the combined company would enable the delivery of smarter and more meaningful experiences to "billions of people" and the creation of a platform that "doesn't just reflect the world but actively accelerates it."

• Read more: Studio Ghibli-style AI images are melting OpenAI's GPUs confirms Sam Altman
• Read more: This 7-inch 1080p 60FPS gaming handheld does it all for $249
• Read more: Nintendo Switch 2 news will be fed straight you with Nintendo's new app