Elon Musk on Friday said his artificial intelligence startup, xAI, will buy X, the social-media platform he also owns, for $33 billion in an all-stock transaction.
The deal will value xAI at $80 billion, making it the second-most valuable AI company behind OpenAI, which is said to be close to finalizing a $40 billion investment with SoftBank.
“This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach,” Musk said on X. “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. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”
Musk bought then-Twitter back in 2022. He led a consortium to acquire the social media platform for $44 billion, taking it private once again.
Big money
Just last month, Anthropic raised a fresh $3.5 billion funding round led by Lightspeed Venture Partners that valued it at $61.5 billion — making it the second-most valuable AI company.
xAI had last been valued at $50 billion in November after its $6 billion Series C (which Lightspeed also participated in).
Just last month the startup introduced the latest iteration of its chatbot, Grok-3, as it tries to compete with Chinese AI firm DeepSeek, as well as OpenAI.
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Illustration: Dom Guzman
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