Billionaire entrepreneur Elon Musk has finalized the sale of X, formerly known as Twitter, to his artificial intelligence company xAI in a $45 billion transaction. The deal includes $12 billion in debt, valuing X at $33 billion—slightly higher than Fidelity’s recent estimate but still lower than Musk’s initial $44 billion purchase price in 2022.
Musk, who has made drastic changes to X since acquiring it, believes this merger will establish an AI-powered social media platform. He emphasized that integrating xAI’s cutting-edge models with X’s extensive user base would create a groundbreaking digital experience. “This merger will unlock immense opportunities by combining xAI’s AI capabilities with X’s scale and data,” Musk shared.
Read more: Elon Musk Reportedly Pressured Reddit CEO on Content Moderation
Although no immediate transformations for X have been announced, Musk suggested that xAI’s Grok chatbot—already embedded in X—would significantly enhance user interactions by providing “more intelligent and meaningful experiences.” The newly combined entity is now valued at $80 billion, marking a significant turnaround from previous estimates that saw X’s worth decline by nearly 80% from its purchase price.
Financial Recovery and Political Influence
After losing major advertisers due to concerns over content moderation, X has recently seen renewed confidence as tech giants like Amazon and Apple resumed their ad spending. Additionally, bondholders successfully offloaded billions of dollars in X-related debt at 97 cents on the dollar, indicating a rise in investor trust.
Musk’s political associations have also played a role in X’s resurgence. His involvement in the Trump administration’s Department of Government Efficiency has strengthened his influence, leading to speculation that investors are banking on Musk’s political leverage rather than X’s financial recovery.
Following Trump’s return to office, X has become a central hub for pro-Trump discourse, with Musk using the platform to amplify conservative narratives and support Trump’s campaign messaging. This shift has increased X’s significance as a primary source for tracking government activities, enhancing its relevance and potential profitability.
The Future of X Under xAI
Musk’s strong focus on artificial intelligence has shaped his latest business strategies. Earlier this year, he led a bid to acquire OpenAI for nearly $100 billion, intensifying his competition with OpenAI CEO Sam Altman. Now, the X-xAI merger is expected to accelerate AI-driven innovation, allowing xAI to introduce new AI functionalities across X’s platform.
With X now operating under xAI, industry experts are closely watching to see how Musk’s AI-driven vision will reshape social media and whether this move will sustain X’s recovery in the long term.
