xAI Acquires X in $113 Billion Stock Deal
1 minute
Artificial intelligence company xAI has acquired social media platform X (formerly Twitter) in an all-stock transaction. The deal values xAI at 33 billion, accounting for X's existing $12 billion debt obligation.
Transaction Details
- Combined company value: $113 billion
- xAI valuation: $80 billion
- X valuation: 45 billion minus $12 billion debt)
- Structure: All-stock transaction
- Integration areas: Data, models, computing resources, distribution, personnel
Background
xAI, founded in 2023, develops large language models and maintains data center infrastructure. The company operates as an AI research laboratory, though public information about its specific technologies remains limited.
X, previously known as Twitter, was acquired by Elon Musk in 2022 for $44 billion. The platform serves approximately 600 million active users and has undergone substantial operational changes, including workforce restructuring and business model adjustments.
Strategic Integration
The merger combines:
- xAI's artificial intelligence development capabilities
- X's social media platform and distribution network
- Shared technical infrastructure
- Combined user data and computing resources
Valeriia Kuka
Valeriia Kuka, Head of Content at Learn Prompting, is passionate about making AI and ML accessible. Valeriia previously grew a 60K+ follower AI-focused social media account, earning reposts from Stanford NLP, Amazon Research, Hugging Face, and AI researchers. She has also worked with AI/ML newsletters and global communities with 100K+ members and authored clear and concise explainers and historical articles.