Athira Sethu
Kochi, 29 March 2025
Elon Musk just offloaded his social network platform X to his AI business xAI for a deal worth $33 billion, entirely in stocks. Musk broke the news through an announcement post on X, with the merger combining the AI capabilities of xAI and X’s extensive base to release considerable potential. This deal marks a new chapter in Musk’s ongoing efforts to integrate AI with social media and create smarter user experiences.
Musk initially purchased Twitter, now called X, for $44 billion in 2022. Musk took over as CEO, renamed the site to X, laid off a majority of its employees, and made a number of policy changes, including regarding hate speech, disinformation, and user verification. With this acquisition, he is further blending the realms of social media and artificial intelligence. In his tweet, Musk highlighted that the collaboration between xAI and X would allow both firms to merge their data, models, computing resources, and talent to create better experiences for users across the globe.
The transaction also values xAI at $80 billion and X at $33 billion. Musk emphasized that the purpose of the merger is to make more purposeful and knowledgeable experiences for billions of individuals with a focus on developing knowledge and truth.xAI, established by Musk in March 2023, is an American company dedicated to discovering the real nature of the universe using AI. Ever since it rolled out in July 2023, xAI has rapidly increased and is manned by experts possessing knowledge of AI with exposure to GPT as well as Google DeepMind.
One of the most important projects of xAI, Grok, was unveiled in late 2023 and became popular in nations such as India. Musk incorporated Grok’s AI functions into X, offering them to users for free. Being the sole owner of both xAI and X, Musk is driving his mission to apply AI for addressing real-life issues and enhance online life ahead.
