Elon Musk’s xAI, his artificial intelligence company, has acquired X, in an all-stock transaction, according to an announcement on Friday afternoon.
The deal values xAI at $80 billion and X at $33 billion, after accounting for X’s $12 billion debt. That’s just over a whopping $160 billion CAD as the combined value of both companies. Not sure anyone had this move on their Bingo card for early 2025.
Musk stated, “xAI has acquired X in an all-stock transaction.” He noted that xAI, established two years ago, has become a prominent AI lab, saying, “Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centres at unprecedented speed and scale.”
X, with over 600 million active users (most of them are when it used to be known as Twitter), has undergone operational changes in the past two years.
“X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth,” said Musk.
The acquisition merges xAI’s AI technology with X’s user base. Musk explained, “xAI and X’s futures are intertwined. 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.”
Musk outlined the goal of the combined entity, stating, “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.”
“I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning,” said Musk. “Thank you for your continued partnership and support.”
We already saw xAI’s Grok AI chatbot heavily integrated into X. We’ve learned from Musk that X will one day make its way into Tesla vehicles. It’s only a matter of time before Tesla possibly acquires xAI it seems?
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How is 80+33=160? X evaluation is $45 billion, minus $12 billion of debt. Add 33 that remains to xAI’s 80, that doesn’t add up to 160.
80 USD + 30 USD = 160 CAD
I see. Apples and oranges.
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