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Elon Musk says xAI has acquired X in deal that values social media site at $33 billion

Elon Musk's artificial intelligence company, xAI, acquired X in an all-stock deal announced on Friday, blending the AI company with the social media platform.
Musk, who purchased Twitter for roughly $44 billion in 2022 and later rebranded it as X, aims to create an "everything app," and this acquisition integrates xAI's Grok chatbot with X's extensive user data and content distribution network.
The deal values xAI at $80 billion and X at $33 billion, although X has $12 billion in debt, leading to some investors marking down the value of their stakes in X by over 70 percent since Musk's takeover.
Musk stated, "Today, we officially take the step to combine the data, models, compute, distribution and talent," and the move is intended to unlock immense potential by blending xAI's AI capabilities with X's massive reach.
This acquisition is expected to intensify competition with OpenAI, a company Musk co-founded but later left, as X provides vital training data and a consumer distribution channel for xAI, potentially leading to smarter experiences for billions of people, though some investors may see the merger as a way to recoup losses and the move will likely draw scrutiny.

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