Elon Musk announced late Friday that the social media platform X has been sold to xAI, his venture in artificial intelligence.
“xAI and X’s futures are intertwined,” Musk stated. “Today, we officially take the step to combine the data, models, compute, distribution, and talent … this will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”
The acquisition was an all-stock deal, with xAI now valued at $80 billion and X valued at $33 billion, inclusive of $12 million in debt.
Musk originally acquired X, formerly known as Twitter, for $44 billion in October 2022.
What does this mean for X users? It suggests a greater integration of AI within the platform. Since its launch in 2023, the social media site has actively promoted its generative AI chatbot, Grok. Additionally, Musk altered the terms of service shortly after the November elections, requiring users to permit AI training on their tweets.
In announcing the sale, Musk claimed X has 600 million “active users,” though he did not specify “monthly active users,” a figure that experts believe to be nearly half of his claim.
The now-private company has lost millions of users since Musk’s acquisition and is projected to face further declines in 2025.
This story is developing…
