- Elon Musk’s xAI acquires X in a groundbreaking all-stock deal valuing xAI at $80B and X at $33B
- xAI’s chatbot Grok, developed for $6B, rivals ChatGPT and Copilot
- The merger blends xAI’s AI capabilities with X’s platform for smarter experiences
Elon Musk recently announced that his artificial intelligence company “xAI” acquired X, formerly known as Twitter.
In a post on his social media platform this afternoon, the multi-billionaire said that xAI acquired X in an all-stock transaction. This means that no actual cash was involved in the transaction, but rather that the ownership stakes of X and xAI were either merged or exchanged. The all-stock transaction revealed a net worth of $80 billion for xAI and $33 billion for X.
“This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach,” Musk wrote. “The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.”
The merger happened about 2.5 years after Elon Musk acquired Twitter for $44 billion. Shortly after the acquisition, the world’s richest man launched xAI — aiming to compete in the AI field against giants like OpenAI, Microsoft, and Google.
Around a year ago, xAI launched its chatbot, Grok, known for being smart and fun to use. It was designed to give quick, direct answers while being engaging and easy to talk to.
Building Grok wasn’t cheap — xAI spent about $6 billion on it, including creating the powerful Colossus supercomputer to make it work. This big investment helped Grok become a strong competitor to other AI tools like ChatGPT.
