Elon Musk Transfers Ownership of X to xAI in $33 Billion Stock Transaction

In a significant corporate maneuver, Elon Musk has announced the sale of his social media platform X to his own artificial intelligence company, xAI, in a deal valued at $33 billion. This transaction, executed entirely in stock, marks a pivotal moment for both companies, which are privately held and not obligated to disclose their financial details publicly.

Musk revealed his intentions through a post on X, emphasizing that this strategic move aims to harness the capabilities of xAI's advanced artificial intelligence technology alongside the extensive reach of the X platform. The transaction reportedly values xAI at around $80 billion.

Having acquired X, previously known as Twitter, for $44 billion in 2022, Musk has made considerable changes to the platform, including staff reductions and modifications to policies surrounding hate speech, misinformation, and user verification, eventually rebranding the site to X. The establishment of xAI followed approximately a year later, further showcasing Musk's commitment to the field of artificial intelligence.

Musk expressed that the futures of xAI and X are now closely linked, stating that the integration of data, models, computational resources, and talent from both entities will create substantial opportunities. This collaboration is set to deliver enhanced, more meaningful experiences to a global audience while adhering to the core mission of promoting truth and advancing knowledge.

As for current users of X, it remains uncertain whether this acquisition will lead to any immediate changes. Notably, xAI has already been utilizing data derived from user posts on X to develop its AI models. Additionally, subscribers to X have access to Grok, an AI chatbot developed by xAI.