Elon Musk’s artificial intelligence company, xAI, has officially acquired his social media platform, X, in a landmark $45 billion all-stock deal. The billionaire entrepreneur announced the acquisition on X, formerly known as Twitter, emphasizing the strategic integration of AI and social media.

Musk Unveils Strategic AI and Social Media Merger

“The combination values xAI at $80 billion and X at $33 billion ($45 billion less $12 billion in debt),” Musk posted, highlighting the financial breakdown of the acquisition. He added that the futures of both companies are deeply connected, making the merger a logical step forward.

“Today, we officially take the step to combine the data, models, compute, distribution, and talent,” Musk stated. “This combination will unlock immense potential by blending xAI’s advanced AI capabilities with X’s massive global reach. The merged company aims to deliver smarter, more meaningful experiences to billions of users while staying true to our mission of seeking truth and advancing knowledge.”

Musk originally acquired X in late 2022 for $44 billion, rebranding the platform and implementing sweeping changes that have reshaped its business model and functionality.

X Sees Growth in Ad Revenue as Major Brands Return

The acquisition follows a period of resurgence for X, as major advertisers such as Disney and Apple have returned to the platform. A recent report from eMarketer forecasts a 17.5% increase in X’s U.S. ad revenue in 2025, reaching $1.31 billion. Globally, ad sales are projected to hit $2.26 billion, marking a 16.5% year-over-year increase. This would be the first revenue growth since Musk took over the platform, following two consecutive years of decline.

X’s Valuation Surges Amid Operational Overhaul

Despite recent valuations suggesting a lower worth—Fidelity valued X at just $12.32 billion in December—the latest deal places X’s valuation at $45 billion. This figure surpasses Musk’s initial purchase price, signaling renewed investor confidence in the platform’s long-term growth potential. Since Musk’s takeover, X has undergone significant transformation, including an 80% reduction in staff and the introduction of AI-driven innovations.

Key Developments Under Musk’s Leadership

Since Musk’s acquisition, X has seen several pivotal changes:

• The launch of Grok, X’s proprietary AI model
• The reactivation of former President Donald Trump’s account, reversing a ban implemented by previous leadership
• The platform’s evolution into what Musk calls the “digital town square,” boasting over 600 million active users

Looking Ahead: The Future of xAI and X

Musk expressed gratitude to the dedicated teams at both xAI and X, stating, “I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning.”

With this acquisition, Musk aims to integrate cutting-edge AI with social media, setting the stage for revolutionary advancements in content creation, personalized user experiences, and digital interactions. As X and xAI continue their convergence, industry analysts anticipate further innovation and market disruption in both the AI and social media sectors.