Elon Musk Sells Social Media Platform X to xAI in $33 Billion Deal

Elon Musk has transferred ownership of the social media platform X to his artificial intelligence company, xAI, in a deal valued at $33 billion. The move, which was recently disclosed in regulatory filings, marks a significant shift in Musk’s business strategy, consolidating his AI ambitions with the social media platform he acquired in 2022.

The transaction means that xAI now owns X, although Musk remains in control of both companies. xAI, which Musk founded in 2023, focuses on artificial intelligence development and recently launched its chatbot, Grok, which is integrated into X. By bringing X under xAI, Musk appears to be further aligning the platform with his vision of advancing AI-driven social interactions.

Details of the deal indicate that X was valued at $33 billion, significantly lower than the $44 billion Musk paid to acquire Twitter before rebranding it as X. This restructuring suggests that Musk may be positioning X as a key component of xAI’s broader plans, possibly using the platform as a testing ground for AI advancements.

Since acquiring Twitter, Musk has made drastic changes to the platform, including removing content moderation teams, altering the verification system, and introducing a subscription model. He has also promoted AI integration, with Grok being one of the latest features aimed at enhancing user engagement through AI-generated responses.

Analysts see the deal as a strategic move that could help xAI leverage X’s vast dataset to improve its AI models. However, it also raises questions about the future direction of X, particularly regarding its role in the AI space and whether Musk plans further restructuring.

Musk has not yet provided detailed comments on how the acquisition will impact users of X. However, given his past statements about making X an “everything app,” the sale could be a step toward integrating AI more deeply into the platform’s functionality.

The announcement has sparked discussions in the tech industry about Musk’s long-term vision and whether this shift could make X more competitive against other social media giants. It remains to be seen how the merger will affect X’s operations, policies, and user experience in the coming months.