Elon Musk announced that his artificial intelligence technology company xAI will acquire "X", formerly known as Twitter, and the transaction will be completed by xAI holding all the shares of "X".
According to Elon Musk, xAI's market valuation after acquiring "X" will increase to $800 billion, of which "X"'s market value will be approximately $450 billion, and its market value after deducting $120 billion in debt will be $330 billion.
@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…
- Elon Musk (@elonmusk) March 28, 2025
At the same time, given that many of the artificial intelligence technology applications behind "X" are derived from xAI, Elon Musk emphasized that "X" and xAI will be even more closely connected through this acquisition, with mutually reinforcing effects in data, models, computing, applications, and community diffusion.
The merger of "X" and xAI is expected to bring some advantages, including using "X" community posts as xAI artificial intelligence training. At the same time, the merger will also reduce the proportion of losses in the financial statements and further simplify the financial structure.
In the past, Elon Musk also merged Tesla with energy company SolarCity to simplify the financial structure of both companies.
