Elon Musk handed over X.com to his artificial intelligence startup xAI in a $33 billion all-stock transaction aimed at fusing social media with AI firepower.
The move officially folds the platform formerly known as Twitter into xAI.
Now, the AI firm has a valuation of $80 billion while p###### X at $33 billion—down from the $44 billion Musk paid in 2022. The deal also includes $12 billion in existing debt.
Musk said the merger would allow xAI to “combine data, models, computing resources, distribution and talent from both companies to accelerate our progress.”
“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,”: Elon Musk said.
@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
— Elon Musk (@elonmusk) March 28, 2025
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…
His chatbot Grok, already embedded in X, is part of that integration. The swap also reshuffles the investor deck. X Corp. shareholders now own 25% of xAI, effectively trading their stake in a social media platform for a piece of Musk’s AI ambitions.
Since Musk took over Twitter in 2022, the company has seen sweeping changes—mass layoffs, advertiser exits and a steep drop in value.
Musk financed the original purchase with a mix of equity and $13 billion in loans from Morgan Stanley and Bank of America.
After the takeover, he quickly ousted top executives and pivoted the platform toward his version of free speech.
Now, with X under xAI’s umbrella, Musk is pushing forward with plans to blend AI and social media into a more innovative, more useful experience.
However, the real action may be taking place far from Silicon Valley. In Memphis, xAI is building out a massive AI campus.
The company acquired a 1-million-square-foot site in the city’s southwest corner to expand its data operations. The Memphis expansion is one of the largest tech investments in the city’s history.
Still, not everyone is thrilled.
The facility runs on methane gas turbines, which emit pollutants like formaldehyde. Local residents have voiced concerns about air quality and transparency.
In response, xAI is building a wastewater recycling plant to reduce pressure on the city’s aquifer.