Elon Musk says xai has acquired x

The startup of Elon Musk, XAI, acquired its social media platform X, formerly known as Twitter, in an All-Stock agreement, he announced in an article on X Friday.

“XAI has acquired X in an All-Stock transaction,” said Musk. “The combination varies xai at $ 80 billion and X at $ 33 billion ($ 45 billion in debt of more than $ 12 billion).”

Musk then described the future of the two companies as “intertwined”. He added: “Today, we officially cross the measure to combine data, models, calculation, distribution and talent.”

The Place X acquisition – The very influential social media platform that Musk bought in 2022 under his old name, Twitter – firmly under the aegis of the Startup of Musk’s AI, which he founded in 2023 to compete with Openai. While XAI’s products, including its AI Grok cat-cat, were closely integrated into the X platform before this agreement, Friday acquisition also combines two of the most prominent companies in Musk.

According to publications such as the Wall Street Journal, the actions of X and XAI will be exchanged for actions of a new portfolio company called XAI Holdings Corp. The WSJ also reports that the leaders of the two companies thought it would be easier to raise funds for a combined entity.

Musk – who also leads Tesla, SpaceX and Neuralink – Note in his article that this transaction values ​​X at 33 billion dollars (lowered with a business value of $ 45 billion due to the $ 12 billion in the company). Musk bought X for $ 44 billion in October 2022 and took it private. However, the evaluation has changed considerably in recent years. At one point, Fidelity evaluated X at less than $ 10 billion.

During the months that followed the inauguration of President Donald Trump – for whom Musk has campaigned aggressively and for whom Musk is now used as a special advisor leading DOGE – X’s evaluation has increased, largely because investors think that the platform is more influential now. Musk said in his article on Friday that X has more than 600 million active users.

Musk launched XAI in 2023 and has since strengthened the startup with IA researchers at the head of the Google Deepmind, Microsoft and Openai industry, and built the Massive data centers necessary to catch up with other border AI developers. To feed these efforts, Musk launched a historic fundraising campaign, including a round of funding of $ 6 billion in December which estimated the startup at $ 45 billion. According to Musk, XAI’s assessment is now even higher, $ 80 billion.

XAI has largely succeeded in his mad race to catch up with Openai, Google Deepmind and Anthropic. In February, the startup published Grok 3, a weaponing AI model which is competitive with the main models of AI of industry on references measuring mathematics, sciences and coding.

But Xai’s successes did not prevent Musk from mingling with Openai, a startup he co -founded with Sam Altman. Musk is currently trying to thwart the transition from for profit – which she must accomplish to obtain future funding – in more than one way. The billionaire owner of Xai has made the for -profit transition from OpenAi the centerpiece of his trial against Openai. Musk also submitted a redemption offer of $ 97 billion for the Altman startup in February. The Board of Directors of Openai quickly rejected the idea, but it may have already increased the price of the asset market of Openai.

One of the main advantages that XAI has on Openai and other startups is its access to X. The big post body that X has accumulated over the years gives XAI a significant advantage in the race for AI training data. In addition, X gives Musk’s AI Startup a huge consumption application to reach users.

Musk has a history of boundaries between its many companies, which has already won him. With XAI’s acquisition of XAI, the two are now actually one – and this decision suggests that the real value of X could reside in the progress of the wider ambitions of Musk IAM.

This story has been updated with additional details on the structure of the agreement.