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Elon Musk’s Ambitious Acquisition: xAI Merges with X
In a groundbreaking announcement, Elon Musk has declared that his artificial intelligence venture, xAI, will be merging with his social media platform, X. This transaction is an all-stock deal, establishing xAI’s value at a staggering $80 billion, while valuing X at approximately $33 billion after accounting for $12 billion in debt.
@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
Details of the Merger
Musk emphasized the transformative potential of this merger, stating:
“This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
X’s Journey Since Going Private
In 2022, Musk took X, previously known as Twitter, private in a $44 billion transaction. Since then, he has managed to redirect the company’s cash flow, with X reportedly achieving $1.2 billion in adjusted EBITDA for 2024.
Despite having a robust user base of 600 million, X faces ongoing challenges due to advertisers’ reluctance to invest significantly in the platform, contributing to a cloud of uncertainty surrounding its financial outlook.
Rise of xAI
On the flip side, xAI has swiftly ascended in the AI landscape, with its Grok LLM technology rivaling the best models available, including those from OpenAI. The company has established a powerful infrastructure, boasting a colossal supercomputer known as Colossus, which consists of around 200, 000 NVIDIA H100 GPUs.
Remarkably, xAI and NVIDIA managed to operationalize Colossus in just 122 days—a task that typically demands many months or years for such complex systems. Notably, the training of the Grok LLM commenced just 19 days after the installation of the first GPU rack in its AI gigafactory.
The Future Outlook
The merger signifies a significant step toward Musk’s aspiration of creating a super app, combining the strengths of both platforms into a singular, powerful entity that could redefine user experiences across social media and AI interfaces.
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