Elon Musk has sold his social media company X to his artificial intelligence start-up xAI in an all-stock deal valued at $80 billion, according to the billionaire. The transaction combined two of Mr. Musk’s companies that have been on different trajectories.
X is worth $33 billion, a significant decrease from its initial valuation of $44 billion paid by Mr. Musk in 2022. In contrast, xAI was valued at $40 billion after a recent fund-raising round. Both companies are privately held and already share resources such as engineers.
A chatbot called Grok, made by xAI, is used on X, while some of X’s revenue comes from xAI. Mr. Musk wrote in his post that “xAI and X’s futures are intertwined.” The combined company aims to deliver smarter, more meaningful experiences to billions of people while staying true to its core mission.
This deal shows how Mr. Musk can play with different parts of his business empire. He has made similar maneuvers in the past, such as using Tesla stock to buy SolarCity. Most of Mr. Musk’s companies are privately held and opaque, but this deal sets a precedent for transparency.
Linda Yaccarino, X’s chief executive, wrote that “The future could not be brighter.” However, investors who have expressed concerns about X’s financial outlook may welcome the transaction. The deal combines xAI and X’s resources to create a more efficient and profitable company.
Experts note that this deal is unusual in its transparency, as it brings together two companies with different trajectories. Investors will be watching how many shares they receive in exchange for their stakes to determine if the deal was fair.
Source: https://www.nytimes.com/2025/03/28/technology/musk-x-xai.html