2 days Ago By Virginia Glaze
X owner Elon Musk is merging the social platform with his own AI company, xAI, in a transaction that values the site at $33 billion USD. Musk made the announcement in a post on March 28, 2025, over two years since he first acquired X , formerly Twitter, in October 2022. Now, the platform is officially part of his artificial intelligence company, which he says is valued at $80 billion.
Dubbing the xAI as “one of the leading AI labs in the world,” Musk will combine X’s data as the world’s ‘town square’ and xAI’s learning models for an entirely new endeavor. “xAI and X’s futures are intertwined,” Musk wrote. “.
..this combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.
” Elon Musk promises to “accelerate human progress” in xAI acquisition The Tesla CEO promised that the new combo will “deliver smarter, more meaningful experiences to billions of people” allowing his team to “build a platform that doesn’t just reflect the world, but actively accelerates human progress.” “I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning,” he concluded.
What is xAI? Musk’s AI company explained xAI is a private company that was founded by Musk in March 2023, which he says aims to “understand the true nature of the universe.” With a focus on AI, xAI is described as an American public-benefit corporation, meaning that it’s a for-profit public entity that works toward improving society. In December 2024, xAI officially launched the world’s largest supercomputer, named ‘Colossus,’ in Memphis Tennessee, and in November of that same year, Musk announced that xAI would start an AI gaming studio to “make gaming great again.
” Related Exclusive: Lawyer explains why Elon Musk’s $50B TikTok purchase simply won’t happen Too many game studios that are owned by massive corporations. @xAI is going to start an AI game studio to make games great again! https://t.co/UR4nFODyfd Musk’s March 2025 post revealing X’s acquisition by xAI went viral almost instantly, leaving netizens equal parts confused and cautious about what the future holds for this unique combination.
Musk’s announcement comes at the height of a debate surrounding the ethics of AI as users flock to ChatGPT to recreate photos in the style of Studio Ghibli. In fact, the trend has become so viral that OpenAI boss Sam Altman revealed that the ChatGPT servers are “melting” due to the influx of requests and promised to make adjustments to make their product “more efficient.”.
