Elon Musk’s artificial intelligence firm, xAI, formerly known as Twitter, in a deal valuing the platform at $33 billion. The move enables xAI’s investors to benefit from the valuation of X, and the merger is expected to support the development of Grok, xAI’s chatbot. Musk confirmed the integration, stating that the two companies will combine their data, computing power, distribution, and talent. He said the transaction values xAI at $80 billion and X at $33 billion, factoring in $12 billion in debt. Analysts noted that the $45 billion gross valuation of X is slightly above Musk’s 2022 take-private deal for Twitter. Details of leadership integration and potential regulatory review remain unclear.
xAI launched less than two years ago, recently raised $10 billion in funding, and competes with OpenAI and DeepSeek. The company has expanded its data center operations, with its Memphis-based “Colossus” cluster said to be the world’s largest. Following the merger, X may serve as a channel for distributing xAI products while supplying user data to enhance model training. Despite earlier financial struggles at X, interest in AI has revived investor confidence. Meanwhile, Musk’s past legal disputes over Twitter disclosures and OpenAI’s transition to a for-profit model continue.