Elon Musk sells X, formerly Twitter, in $33 billion deal

Elon Musk has announced the sale of X, the platform formerly known as Twitter, to his artificial intelligence company xAI in an all-stock deal worth $33 billion.

The transaction values xAI at $80 billion and X at $33 billion after accounting for $12 billion in debt.

Musk described the merger as a strategic step to combine X’s vast user data and real-time information with xAI’s advanced AI models, computing power, and talent.

Musk explained the decision in a post on X, stating that the futures of xAI and X are deeply connected.

He emphasized that the combined company will focus on delivering smarter, more meaningful experiences to users while staying true to its mission of advancing knowledge and truth.

Linda Yaccarino, CEO of X, supported the move, calling the future of the merged company “brighter than ever.”

The integration of xAI’s chatbot, Grok, into X last year played a key role in the decision.

Musk hinted at further AI-driven enhancements to the platform, suggesting that this merger is only the beginning of a larger transformation.

Public reaction has been mixed, with some users expressing surprise at the deal while others questioned why X was folded into xAI rather than the other way around.

Analysts are closely watching how this merger will reshape the AI and social media landscape, particularly in relation to competitors like OpenAI and Meta.

The deal underscores Musk’s expanding influence across technology sectors, from electric vehicles and space exploration to artificial intelligence and digital communication.

Market observers anticipate significant reactions in related stocks when trading resumes.

This acquisition signals a new phase in the convergence of AI and social media, with potential implications for data privacy, content moderation, and the future of online interaction.

Further developments are expected as Musk’s companies continue to push the boundaries of innovation.

About X

X, formerly known as Twitter, is a social media platform that enables users to share short messages, media, and engage in discussions.

Originally founded in 2006, it became one of the most influential platforms for real-time news, trends, and public conversations.

After Elon Musk acquired the company in 2022, he rebranded it as X in 2023, aiming to expand its functionality beyond social media into payments, banking, and an all-in-one digital hub.

The platform retains core features like posting tweets (now simply called “posts”), retweeting, liking, and replying, but has introduced several changes under Musk’s leadership.

These include subscription-based verification, longer post limits for paying users, and a stronger emphasis on creator monetization through ad revenue sharing.

However, the rebranding and policy shifts—such as relaxed content moderation and the removal of legacy verification—have sparked debates about the platform’s direction and user experience.

Despite its transformation, X continues to be a major space for public discourse, breaking news, and influencer engagement.

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