Elon Musk’s AI Company Acquires X Platform for $45 Billion

On Friday, March 28, 2025, Elon Musk announced that his newly established company, xAI, has acquired the social networking platform X—formerly known as Twitter—for $45 billion, including debt. In a post on X, Musk stated, ‘The future of xAI and X are intertwined. Today, we officially step forward to combine data, models, computing power, distribution, and talent.’ He added that the company’s valuation is set to reach $80 billion. The acquisition was made in an all-stock transaction, valuing xAI at $80 billion and X at $33 billion ($45 billion minus $12 billion debt). Since its inception two years ago, xAI has quickly become one of the leading AI labs globally, building advanced models and data centers. Recently, Musk’s AI startup raised $6 billion from investors and was valued at $40 billion, according to sources cited by Reuters.