@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…
— Elon Musk (@elonmusk) March 28, 2025
“xAI and X’s futures are intertwined. 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. The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”-Elon Musk
Today’s transaction comes about six weeks after Musk offered to buy OpenAI, the AI R&D company that owns ChatGPT, for $97.4 billion. Sam Altman, CEO of OpenAI, swiftly turned down the bid.
AI remains the hottest sector in tech and Musk has big plans for xAI. Making a deal that increases the company’s valuation might be part of something big that the multi-billionaire is planning. The startup company created large language model (LLM) chatbot GrokAI that is available to X users.
