Elon Musk’s AI company, xAI, has acquired his social media platform X (formerly Twitter) in an all-stock deal worth 33bn,including12bn of debt.
Musk had recently raised 1bnofdebtfinancingforX,valuingthecompanyat44bn, the same as when he bought it three years ago.
The deal will combine the data, models, compute, distribution and talent of both companies, to “unlock immense potential” by blending xAI’s expertise with X’s massive reach.
Both X’s CEO, Linda Yaccarino, and xAI’s cofounder, Igor Babuschkin, posted supportive messages on X, but it is not yet clear whether Yaccarino will remain CEO or how the acquisition will affect X’s employees.
Following Musk’s takeover, X’s financial situation has improved with the return of advertisers post-Trump’s reelection and Musk’s appointment to run the Department of Government Efficiency in the administration.
