Elon Musk has merged his artificial intelligence startup xAI with his social media platform X, formerly known as Twitter, to create a combined entity under xAI Holdings Corp valued at $113 billion.
The deal values xAI at $80 billion and X at $33 billion, $45 billion minus $12 billion in debt, Musk announced in a post on X.
The acquisition will combine xAI’s artificial intelligence capabilities with X’s reach of more than 600 million active users, providing xAI with a distribution channel for its products such as AI chatbot Grok.
“The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge,” Musk wrote on X.
“This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”
Linda Yaccarino, X CEO, wrote in a post “X + xAI. The future could not be brighter."
The future could not be brighter ✨ https://t.co/GoJE99KxxI
— Linda Yaccarino (@lindayaX) March 28, 2025
The acquisition comes after Musk last week raised $1 billion for X in debt financing that valued the company at $44 billion, the price paid by Musk for the app three years ago.