Elon Musk Transfers Ownership of X to His AI Venture, xAI

On Friday night, Elon Musk revealed that X, the social networking site formerly recognized as Twitter, has been acquired by his artificial intelligence firm, xAI.

“xAI and X’s futures are interconnected,” Musk shared in a message on X. “Today marks the official move to unify the data, models, computing resources, distribution, and talent … this will enable us to create a platform that not only mirrors the world but also propels human advancement.”

As reported by the Hollywood Reporter, the acquisition was finalized through an all-stock deal. This transaction values xAI at $80 billion and X at $33 billion, which includes $12 million in liabilities.

Musk initially purchased Twitter in October 2022 for $44 billion and subsequently rebranded it as X. This recent development indicates a more profound integration of AI into the platform’s primary operations.

For users, this likely suggests an increase in artificial intelligence functionalities within their X interactions. Since its inception in 2023, the platform has actively marketed its generative AI chatbot, Grok. Musk also modified the platform’s terms of service shortly after the 2023 U.S. elections, mandating users to agree to allow their posts to be utilized for training AI models.

In his announcement, Musk asserted that X currently boasts 600 million “active users,” although he did not specify if this figure pertains to monthly active users. Independent sources estimate that the true number of monthly users may be closer to half that amount.

Since Musk’s acquisition, X has reportedly seen a decline of millions of users and is expected to experience additional losses by 2025.

This story is still unfolding.