Elon Musk Sells X (formerly Twitter) to xAI for $45 Billion
The transaction raises potential conflicts of interest as Musk integrates his social media platform with his AI company.
Elon Musk announced on Friday that he has sold his social media company, X, formerly known as Twitter, to his artificial intelligence firm xAI for a total of $45 billion, which includes $12 billion in debt.
According to reports, the deal raises concerns regarding potential conflicts of interest.
Musk stated on X that the future of xAI and X are intertwined, declaring, "Today we officially take the step to unite our data, models, and talent." While no immediate changes to the platform were disclosed, it was noted that xAI’s chatbot, Grok, has already been integrated into the social media site.
Musk claimed that this merger would provide users with a more intelligent and meaningful experience.
Since Musk acquired Twitter in 2022, he has implemented a series of changes alongside the rebranding.
These measures have reportedly driven away several significant advertisers from the platform.
In the months following the acquisition, Musk laid off approximately 80 percent of the company’s employees, overhauled the platform's verification system, and reinstated several suspended accounts.
Musk is also a co-founder of OpenAI, from which he stepped away in 2019 before launching his own venture, xAI.
Last year, he sued former OpenAI CEO Sam Altman and another co-founder, alleging that they had betrayed the founding principles of the organization.
In statements relayed through his attorney to the Wall Street Journal, Musk expressed a desire for OpenAI to return to its original mission of being a source of open-source, safety-focused innovation intended for the public good, stating, "We will ensure this happens."
According to reports, the deal raises concerns regarding potential conflicts of interest.
Musk stated on X that the future of xAI and X are intertwined, declaring, "Today we officially take the step to unite our data, models, and talent." While no immediate changes to the platform were disclosed, it was noted that xAI’s chatbot, Grok, has already been integrated into the social media site.
Musk claimed that this merger would provide users with a more intelligent and meaningful experience.
Since Musk acquired Twitter in 2022, he has implemented a series of changes alongside the rebranding.
These measures have reportedly driven away several significant advertisers from the platform.
In the months following the acquisition, Musk laid off approximately 80 percent of the company’s employees, overhauled the platform's verification system, and reinstated several suspended accounts.
Musk is also a co-founder of OpenAI, from which he stepped away in 2019 before launching his own venture, xAI.
Last year, he sued former OpenAI CEO Sam Altman and another co-founder, alleging that they had betrayed the founding principles of the organization.
In statements relayed through his attorney to the Wall Street Journal, Musk expressed a desire for OpenAI to return to its original mission of being a source of open-source, safety-focused innovation intended for the public good, stating, "We will ensure this happens."
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