Elon Musk Sells Ownership of X to His xAI Company

Musk acquired the platform for $44 billion USD in April 2022.

Elon Musk declared that X, formerly known as Twitter, has been purchased by his company xAI in an all-stock deal.

The proprietor of both enterprises disclosed on X that the combination now appraises xAI, the AI firm responsible for Grok, at $80 billion USD, whilst X is presently valued at $33 billion USD following Musk's acquisition for $44 billion USD in April 2022. The destinies of xAI and X are interconnected. Today, we formally initiate the integration of data, models, computation, distribution, and expertise,” he stated.

Musk stated, “This amalgamation will unleash significant potential by integrating xAI’s sophisticated AI proficiency with X’s extensive reach.” The merged entity will provide more intelligent and significant experiences to billions while remaining committed to our fundamental objective of pursuing truth and enhancing knowledge. This will enable us to create a platform that not only mirrors the globe but also propels human advancement.

Emerge reported that Fidelity Investments valued its X share in October 2024, estimating the platform's total worth at approximately $9.4 billion USD. The company's valuation rose at the year's conclusion, although remained 77% lower than the initial purchase price. The specifics regarding Musk's $33 billion USD valuation were not disclosed. The journal states that although Musk is effectively selling X to himself, its merger with xAI "could provide the company with access to new investors, enhanced valuation, and a narrative shift away from Twitter's tumultuous acquisition," particularly in light of its existing $12 billion USD debt.