Elon Musk reportedly sells X to his AI company, xAI, in a deal worth $45 billion—including $12 billion in debt. According to CNN, Musk took to his X account to reveal details of the transaction. He stated: “Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
What We Know About the $45 Billion Deal
Reports confirm that Elon Musk transferred ownership of X (formerly Twitter) to his artificial intelligence startup, xAI, in a bold financial pivot. While Musk acquired Twitter in 2022 for approximately $44 billion, this recent internal sale carries a higher price tag at $45 billion, including $12 billion in debt.
Here’s the kicker: Even though the sale price is technically more than what Musk paid two years ago, Fidelity reported that the platform’s value had dropped significantly—estimating in October 2023 that X was worth nearly 80% less than its original value. By December, Fidelity had slashed its estimate to just 30% of what Musk initially paid.
Musk appears to be steering toward tighter integration between X and xAI’s flagship product, Grok, the AI chatbot already live on the platform. While no significant structural changes to X have been confirmed yet, insiders are buzzing that AI could soon become a major pillar of user interaction on the platform.
This move mirrors Meta’s pivot toward the Metaverse, signaling Musk’s ambition to create a next-gen ecosystem where social media and AI are deeply intertwined. By integrating Grok, xAI’s chatbot, into a platform with hundreds of millions of users, Musk is positioning xAI to benefit from a powerful live testing ground. This could rapidly accelerate xAI’s development in areas like real-time machine learning and natural language processing. Yet, while Musk asserts the deal values X at $33 billion, some experts are skeptical. Considering the $44 billion he originally paid in 2022 and Fidelity’s revised valuation of just $13.2 billion in December.
Conclusion: Elon Musk Reportedly Sells X to His AI Company in a Bold New Era of Tech
When Elon Musk reportedly sells X to his AI company, it’s more than a headline—it’s a signal that the lines between social platforms and AI tools are blurring fast.
