In a consolidation of his technical companies, X-owner Elon Musk said in a message on Friday that Xai, the developers of Grok, X (formerly Twitter) had taken over in a transaction for all shares. According to Musk, the merger appreciates $ 80 billion and x on $ 33 billion.
Musk bought Twitter for $ 44 billion in April 2022. By October 2024, Fidelity Investments adjusted the valuation of his interest in X, making the total value of the company around $ 9.4 billion.
Although the appreciation had been somewhat recovered in December 2024, it was still no less than 77% compared to the purchase price of Musk. In other words, how Musk arrived with a appreciation of $ 33 billion would cause an interesting reading.
All the head of various companies, including SpaceX and Tesla, launched Musk Xai in July 2023, a year after the purchase of Twitter. Although he said that the goal of Xai was to “understand reality”, a constant feud with the former business partner OpenAi CEO Sam Altman was also a driving factor.
“Today we are officially taking the step to combine the data, models, calculation, distribution and talent. This combination will unlock a huge potential by combining Xai’s advanced AI capacity and expertise with the enormous range of X,” Musk wrote on X Friday. “The combined company will provide smarter, more meaningful experiences to billions of people while it remains loyal to our core mission to seek truth and promote knowledge.”
Calling X “The Digital Town Square”, Musk said the platform had more than 600 million active users. Meta, who launched a rival social media platform in July 2023, and Bluesky, which was launched in February of that year, tried to chase away users.
The Bluesky user statement surpassed 27.44 million users in January 2025, many of whom had left Twitter after the acquisition of Musk. At the same time, reinforced by the connections with Facebook and Instagram, Threads had more than 320 million monthly active users from February 2025.
Musk made the headlines in July last year when it was revealed that Grok would be trained on X user data. The setting can be switched off, but is enabled as standard for user accounts.
Some users of social media received today’s announcement and mock the seemingly significant valuation boost in a deal between two of Musk’s own companies.
“I also sold my Honda Accord from 2008 to myself for $ 1 million,” New York Times Tech reporter Ryan Mac said on Bluesky.
“Wait a minute … What is different … different from on paper?” An X user early.
However, the merger could serve a more pragmatic purpose. With X who still has a considerable debts – $ 12 billion, according to Musk’s Tweet – who was in the Xai paraplu, the company could give access to new investors, improved appreciation and a narrative pivot point of the chaotic acquisition of Twitter.
“This allows us to build a platform that not only reflects the world, but actively speeds up human progress,” he said.
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