• by Laurie Sullivan  @lauriesullivan, March 28, 2025

Elon Musk announced Friday on his X platform that the social media site has been acquired by xAI in an all-stock transaction for $45 billion, including $12 billion debt.

"The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt),” Musk wrote in the post.

The companies have officially taken steps to combine data, models, computing power, distribution and talent, he wrote. He believes the combination will unlock the potential of artificial intelligence and social media by providing advanced AI capabilities.

“This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress,” Musk wrote. “I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point.”

The goal when Musk bought Twitter in 2022 had been to create one network of apps, from television to social media, under the name of X.

It's not clear whether Musk plans to keep the name "X" for the social-media platform or how the two companies will integrate.

Musk has made many changes to the platform since acquiring Twitter, now X. He laid off 80% of the company’s staff, changed the platform’s verification system and brought back suspended accounts.

His changes prompted many advertisers to leave the platform, although some have come back since. Some advertisers that had abandoned X after hate speech surged on the platform and ads were seen running alongside pro-Nazi content have since begun to return.

If the layoffs sound familiar, look no further than his current role at the Department of Government Efficiency in the Trump administration. He is reportedly the richest man in the world, and Musk runs his companies lean to save money.  

The key to this acquisition is Musk’s company xAI and the chatbot Grok, which has expanded onto other social-media platforms.

Users previously could only interact with the chatbot on X or on the Grok app.

Now Dubai-based Telegram users can chat with it.

This step could be a strategy to increase the Grok AI's reach and give Telegram another chance to compete in the world of AI.