Elon Musk announced the merger of his artificial intelligence startup xAI with X, the social media platform formerly known as Twitter, in an all-stock transaction. The deal values xAI at $80 billion and X at $33 billion. Musk emphasized the strategic importance of combining the strengths of both companies, including xAI’s advanced AI capabilities and X’s massive user reach. The merger is structured as a stock swap, with investors of X likely receiving xAI shares, and both companies remain privately held under Musk’s control.
Musk’s xAI, launched less than two years ago, aims to compete with AI giants like OpenAI, Google, and Microsoft. The merger will further integrate xAI’s Grok chatbot into the X platform and enhance the development of AI technologies. The companies share investors such as Andreessen Horowitz and Sequoia Capital, and Musk has been navigating the AI landscape while continuing to lead multiple ventures, including Tesla and SpaceX. This merger follows Musk’s track record of integrating his businesses, such as Tesla’s acquisition of SolarCity in 2016, which faced legal challenges but was ultimately upheld by the courts.