Artificial intelligence startup xAI has acquired social platform X, which is also run by Elon Musk, the businessman announced in a statement on March 28, noting that the deal will combine xAI's technological capabilities with X's broad audience.
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Terms of the transaction and valuation
Musk noted that the combination values xAI at $80 billion and X at $33 billion, including $12 billion in debt, for a total value of $45 billion for X. The deal is being done through a stock swap, and the newly created entity, XAI Holdings, will be worth more than $100 billion excluding debt, according to sources. Morgan Stanley acted as sole financial adviser, representing both parties.
Details
Musk said the merger between xAI and X would “unlock enormous potential” by combining cutting-edge AI technology with the platform’s mass reach. “Their futures are tightly connected, and we’re bringing together data, models, compute, and talent,” he added. The deal also stabilizes X’s investors after uncertainty over platform changes that alienated some users and advertisers, and strengthens the relationship with xAI, which uses X’s data to improve its Grok chatbot.