On March 28, Elon Musk made a big announcement in the context of his xAI AI development — he sold the social network X, formerly known as Twitter, to xAI for $33 billion. In fact, this “sale” is a major strategic shift in its internal ecosystem and is considered an important step towards the realization of Musk’s idea of a “super-app”.
Musk noted that after this transaction:
- xAI’s company value has reached $80 billion
- X’s value has increased from $45 billion to $33 billion after deducting debt
“The future of xAI and X is closely intertwined. Today, we have officially taken a step towards combining data, models, computing power and talent,” Musk said.
What will change?
- Grok’s artificial intelligence will now be deeply integrated into the X platform.
- The new combined entity will be called xAI Holdings.
- According to Bloomberg sources, the company is valued at more than $100 billion.
- Morgan Stanley acted as financial advisor to the deal.
Why are investors worried?
According to Reuters, investors have been kept abreast of the details of the merger. Their opinions have not been taken into account, and the issue of compensation is still unclear.
In addition, according to a CNN source, Musk intends to “strengthen his leadership position in the field of artificial intelligence” through these actions. This will also politically suit the interests of the Donald Trump administration.
Recall:
- In 2022, Musk bought Twitter for $44 billion.
- Later, he merged it into X Corp. and changed its name to X.
- Creating an “app for everything” has been Musk’s long-standing dream.
Meanwhile, Musk also tried to buy OpenAI, but Sam Altman rejected the offer, sarcastically replying:
“If you want, we can buy Twitter for $9.74 billion.”
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