After two years since acquiring Twitter for $44 billion in 2022, Elon Musk has announced the transfer of the entire share of his social media platform X to the artificial intelligence company xAI, the transaction being carried out through stock exchange. According to foreign reports on March 28, the deal was valued at $33 billion, with a total valuation of $45 billion, including X’s debt of $12 billion.
This merger represents a strategic realignment among tech ventures for Musk, who is now focusing on combining X’s large user base and distribution infrastructure with xAI’s generative AI technology. After the deal, xAI’s corporate valuation is estimated at $80 billion.
Musk plans to integrate xAI’s AI models into the X platform to bolster AI-based functions like content recommendation algorithms, real-time language translation, and user behavior analysis. Currently, xAI provides generative AI services to premium users on the X platform through the Grok chatbot.
The transaction enables xAI to directly utilize X’s data, establishing a foundation to simultaneously advance the efficiency and accuracy of AI model training and service sophistication. Since the transaction was done entirely through stock exchange and Musk holds shares in both companies, there will be no change in control structure.
However, the integration of AI technology and social platforms may bring issues such as privacy protection, algorithmic bias, and data usage standards, which underscores the need for future regulatory and transparency measures.
This deal is interpreted as part of Musk’s long-term strategy to accelerate the platform strategy combining social media and AI technology while positioning xAI as a key player in the AI industry.