Elon Musk Merging Portfolio Companies xAI And X In $33 Billion Deal

By Amit Chowdhry • Mar 29, 2025

xAI, the artificial intelligence company founded by Elon Musk, has acquired X – which is the social media company formerly known as Twitter that is also owned by Elon Musk. This deal was valued at $33 billion in an all-stock transaction. Musk said that this deal values xAI at $80 billion and X at $33 billion ($45 billion minus $12 billion of debt).

This deal will improve the integration of Grok into X. Grok is the generative artificial intelligence chatbot created by xAI. The deal also helps share xAI’s value with Twitter’s co-investors.

xAI launched less than two years ago and has raised over $12 billion in total funding so far. Musk was also involved in the launch of xAI rival OpenAI with Sam Altman and several other founders. However, due to disagreements in the strategic direction, Musk stepped away from OpenAI. Musk ended up making a $97.4 billion bid for OpenAI in February, but that offer was declined. Musk also sued OpenAI in a federal court in California to prevent it from being converted from a non-profit to a for-profit. But a judge denied Musk’s request for a preliminary injunction that would prevent the conversion.

In 2022, Musk closed the deal to take Twitter private for $44 billion with a consortium of investors. Musk was inspired to push for the deal with a goal of pushing free speech on the platform. During the time of the deal, Musk disclosed that he had secured financing from a group of banks led by Morgan Stanley, Bank of America, Barclays, MUFG, Société Générale, Mizuho Bank, and BNP Paribas.

xAI recently launched Grok 3. Grok 3 features better reasoning, speed, and decision-making. This includes “Think” mode for step-by-step problem solving and “Big Brain” for more complex tasks. Plus, the “DeepSearch” feature features real-time web research.