Elon Musk’s xAI Buys X for $33B

Elon Musk’s AI firm xAI has acquired X (formerly Twitter) in a deal valuing the social media platform at $33 billion, deepening the integration between AI development and social media data. The move strengthens xAI’s chatbot Grok by providing access to X’s real-time user data and distribution channels.

Musk confirmed the deal, stating it values xAI at $80 billion and positions the two companies for shared computing power, data, and talent. The acquisition also aligns with Musk’s growing AI ambitions, competing against OpenAI and other tech giants.

Saudi investor Prince Alwaleed bin Talal, a key X shareholder, expects his holdings to grow to $4–5 billion post-merger. Meanwhile, analysts note the $45 billion price (including debt) surpasses Musk’s 2022 Twitter buyout, signaling strategic financial maneuvering.

The merger raises questions about regulatory scrutiny and leadership restructuring, but also fuels X’s AI-driven transformation. Musk’s influence in the AI sector and political landscape continues to expand, as investors bet on xAI’s future dominance in the industry.