Elon Musk’s Xai acquired X in all share transactions worth $113 billion, valuing the total company at $113 billion

In a move that sent shockwaves in the tech world and beyond, Elon Musk’s artificial intelligence startup Xai acquired X Corp (formerly known as Twitter) for $33 billion.

The deal was announced late Friday night, bringing Xai to $80 billion and the total company to $113 billion, making its data, models and talent exploited. The deal can mark a turning point for both AI and social media, bringing together two of Musk’s most talked about ventures.

Xai acquires X (formerly Twitter) for $113 billion

Musk confirmed the news directly on the platform itself.

“@xai acquired @X in all stock transactions. Xai values ​​Xai at $80 billion and X at $33 billion ($45 billion less).”

@xai acquired @X in all share transactions. This combination is valued at $80 billion for Xai and $33 billion for X ($12 billion less for $45 billion).

Since its founding two years ago, Xai has quickly become one of the world’s leading AI labs.

– Elon Musk (@elonmusk) March 28, 2025

Since launching in 2023, Xai has quickly established itself as a major force in artificial intelligence and is able to develop large-scale models and infrastructure.

“X is a digital town square, with over 600m of active users going to find a real-time source for ground truth, transforming into one of the world’s most efficient companies in the last two years, providing scalable future growth,” Musk added to X’s post, adding that

According to Musk, Xai and X’s futures are deeply connected, with the merger showing a formal move that combines the data, models, computational resources, distribution channels and talent from both companies. He believes this integration will open up important opportunities by combining Xai’s AI expertise with X’s big reach, ultimately leading to a more intelligent and relevant user experience.

The mask ecosystem has become tight

The merger has linked Xai’s growing AI toolkit to the global scale of X Corp’s user base. Since rebranding from Twitter in 2023, X Corp has been Musk’s attempt to convert traditional social media platforms into a wider range. “All apps”. Now, as part of Xai, experimental AI companies have access to large audiences and one of the largest public datasets on the Internet.

Founded in 2023 on the mission of “understanding the essence of the universe,” Zai quickly created its own name. Its Grok AI assistant is already attracting attention, and the company’s mission to accelerate scientific discovery through AI resonates with both investors and the broader tech community. With this agreement, Xai not only expands its operations, but also ensures a real-world testbed to deploy technology in front of everyday users.

The acquisition, which is fully enacted through inventory, reflects Musk’s trust in the long-term potential of composite entities. It positions Xai as one of the most valuable AI startups in the world, and is an incredible feat for businesses that have been in under two years. At the same time, X Corp’s $33 billion valuation shows that despite past turbulence, the platform continues to retain strategic value in Musk’s broader vision.

High Stakes Betting

This is an important move, even if it is a mask standard. It blends two of his most ambitious ventures: Xai has only been two years and is one of the already most talked about AI startups, with X Corp taking over and rebranding after acquiring Twitter in 2022.

Xai built momentum quickly. Its conversational AI assistant, Grok, is already live, and the company is building its infrastructure at speed. The acquisition places a social layer on its foundation. It’s a real-time mountain, in addition to Xai access to a global user base of over 600 million people.

The structure of the trade – a complete stock exchange – spends a strong signal that Musk thinks for the long term. He hasn’t cashed. He’s doubled.

What will change for users and the industry?

In the world of technology, this is more than just a headline. The deal blurs the line between AI research and public platforms. Analysts have already speculated what that means, including smarter content moderation, better advertising systems, or AI-powered tools layered into user experiences. Musk’s Grok assistants were instantly visible on X, allowing users to help organize their posts and check claims.

This merger could turn X into more than just a social feed. Behind Xai’s resources, the platform may start to function like an intelligent assistant. This is where the conversation is guided, verified and sometimes generated with the help of AI.

Still, the questions are flying. Main things: What happens to user data? X Corp’s huge archive of real-time conversations is Goldmine, a machine learning model. However, the data has a reputation for using privacy concerns and regulatory attention, especially pushing limits.

Long-standing obsession with “X”

This transaction marks another chapter of the long-standing relationship of masks with the letter “X.” His obsession with the letter “X” lasted decades, from launching SpaceX from X.com (later PayPal) to rebrand Twitter as X. Through these ventures, Musk has been steadily built into a unified digital presence.

Now, by bringing the XAI Corp under the Xai umbrella, he controls a platform that blends mass communication with experimental AI. For Xai, it’s a major leap, from research-driven startups to companies that directly impact hundreds of millions of online behavior. For X Corp, it’s yet another pivot. This time, we will be under the direction of a company built around innovation through artificial intelligence.

There is no word exactly how integration will unfold. But if Musk follows his usual playbook, expect bold moves, breakneck timelines, and lots of discussion. This story is not over.

What’s next?

The detailed roadmap has not been shared yet, but there are likely a few things to be done. Xai almost certainly finds a way to integrate Grok into X. Whether it helps people find trustworthy information, flag false information, or improve users’ interaction with content, potential use cases are widespread.

There are also business aspects to consider. With advertising revenue no longer being X’s only North Star, new subscription products or AI-powered services may be introduced. The combination of AI, real-time data, and large distributions is rare, and Musk currently owns all three.

But not everyone is still praised.

Questions regarding data privacy have already been raised. Putting AI deep into social platforms with this kind of reach will attract regulatory interest. And masks’ all-in approaches (see across Tesla, SpaceX, and neuralink) can make integrations move quickly, whether they’re fully equipped or not.

The whole picture

For Xai, this is a quick way to become more than just an AI lab. Ready or not, it’s now a consumer company. For X Corp, this is a reinvention shot. Transforms legacy social networks into something that blends communication and intelligence in new ways.

I don’t know exactly how this works. But one thing is certainly true. We look closely at the world of technology. Musk only placed another big part of his long-term vision, and it’s only a matter of time before the next one falls.