X Acquired by xAI in Landmark $45B Deal

In a surprising turn of events, X, formerly known as Twitter, has been acquired by xAI, Elon Musk’s artificial intelligence company. The deal, finalized on Friday, marks a significant shift in the landscape of social media and AI integration.

The all-stock transaction values xAI at a staggering $80 billion and X at $33 billion, reflecting Musk’s initial take-private valuation of $45 billion minus $12 billion in debt. This acquisition surpasses Musk’s 2022 take-private price of $44 billion by $1 billion.

“xAI and X’s futures are intertwined,” Musk announced on X. “Today, we officially take the step to combine the data, models, compute, distribution, and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”

Musk envisions a future where the combined company delivers “smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.” He believes this will enable them to build a platform that actively accelerates human progress.

The implications for X’s consumer-facing product and its staff, including CEO Linda Yaccarino, remain unclear. Yaccarino expressed optimism, stating, “@X + @xAI The future could not be brighter.”

As Musk also helms Tesla and SpaceX, this acquisition adds another layer to his expansive portfolio, signaling a potential convergence of AI, social media, and beyond. Industry observers are keenly watching to see how this merger will redefine the digital experience.