Elon Musk announced Friday that he has sold his social media company, X, to his artificial intelligence firm, xAI, in a $45 billion deal. The transaction, which includes $12 billion in debt, values X at $33 billion—slightly more than what Musk paid for the platform in 2022.
In a statement on X, Musk emphasized the strategic importance of the deal, stating that “xAI and X’s futures are intertwined.” He highlighted the potential for deeper integration between AI and social media, saying the combination would unlock “immense potential” by merging xAI’s artificial intelligence expertise with X’s vast user base.
Although no immediate changes were announced, xAI’s Grok chatbot is already embedded within X’s platform. Musk hinted that the newly combined entity, which he claims has an overall value of $80 billion, will offer “smarter, more meaningful experiences.”
X’s valuation has fluctuated dramatically since Musk’s controversial takeover, which included mass layoffs, an overhaul of the verification system, and the reinstatement of banned accounts. Investment firm Fidelity estimated last year that X had lost nearly 80% of its value, though recent financial moves—along with a resurgence in advertiser interest—have helped the platform recover. Amazon and Apple are reportedly reinvesting in X, signaling renewed confidence from major brands.
The acquisition also comes as Musk takes on a role in the Trump administration as part of the Department of Government Efficiency. His deepening involvement in government operations has raised concerns about his ability to manage his business empire, particularly Tesla. However, integrating X and xAI could streamline Musk’s efforts to establish himself as a dominant player in artificial intelligence—an area of strategic importance for both the White House and the broader tech industry.
Musk’s leadership and growing government influence appear to be central to X’s financial recovery. Since Trump’s return to office, X has solidified its position as a key platform for political discourse and engagement with the administration. Musk has used his account, followed by over 200 million users, to amplify conservative narratives and bolster Trump’s campaign messaging, positioning X as a vital tool in the current political landscape.
With X now under xAI’s control, the future of the platform remains uncertain, but the merger suggests Musk is betting big on the intersection of AI, media, and political influence.
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