Billionaire Elon Musk has announced the sale of X, formerly known as Twitter, to his artificial intelligence company xAI in a $45 billion deal. The transaction includes $12 billion in debt, valuing X at $33 billion -- a slight increase from Fidelity’s recent estimate but still below Musk’s original $44 billion purchase price in 2022.
Musk, who has made significant changes to X since acquiring it, said the merger will create a powerful AI-driven platform by integrating xAI’s advanced models with X’s massive user base. “This combination will unlock immense potential by blending xAI’s AI expertise with X’s reach and data,” he posted.
While no immediate changes to X were announced, Musk hinted that xAI’s Grok chatbot—already embedded in X—would play a key role in delivering “smarter, more meaningful experiences.” The new combined entity is valued at $80 billion, a major reversal for X, which was previously estimated to be worth 80% less than Musk’s purchase price.
X’s Financial Recovery and Political Influence
After major advertisers abandoned X due to content moderation concerns, the platform has recently seen Amazon and Apple reinvest in ad campaigns, signaling a potential rebound. Additionally, a group of bondholders managed to sell off billions in X-related debt at 97 cents on the dollar, reflecting renewed investor confidence.
Musk’s political ties have also played a role in X’s revival. His position in the Trump administration’s Department of Government Efficiency has given him significant influence, leading to speculation that investors are betting on Musk’s political clout rather than X’s financials.
Since Trump’s return to office, X has become a key hub for pro-Trump content, with Musk himself using the platform to push conservative narratives and amplify Trump’s campaign messaging. This has made X an essential tool for tracking the administration’s activities, boosting its relevance and potential profitability.
The Future of X Under xAI
Musk’s push into AI has been a central focus of his recent business moves. Earlier this year, he led an effort to buy OpenAI for nearly $100 billion, escalating his rivalry with OpenAI CEO Sam Altman. Now, the X-xAI merger is expected to accelerate AI adoption, allowing xAI to rapidly deploy new AI tools across X’s platform.
With X now under xAI’s umbrella, industry watchers are keen to see how Musk’s AI ambitions reshape the social media landscape—and whether X’s resurgence will continue in the coming months.
