Elon Musk merges xAI and X in a $113B deal: what’s next for the future of tech
Elon Musk announced the merger of xAI and X in a major deal, combining AI and a social platform for a global breakthrough — what’s ahead for users and the tech market?
Photo: Gage Skidmore, CC BY-SA 2.0
On March 28, Elon Musk announced the full merger of his artificial intelligence company xAI and the social platform X (formerly Twitter) in an all-stock transaction.
The combined entity is valued at $113 billion: xAI at $80 billion, and X at $33 billion (including $12 billion in debt).
Founded just two years ago, xAI has rapidly become a leader in the AI industry, building models and infrastructure at an unprecedented pace.
Meanwhile, X has become a central hub for 600 million active users and is now considered one of the most efficient tech companies.
The two companies are now officially merging their resources: data, computing power, models, and teams.
Musk said this move would unlock "tremendous potential" to create a platform that not only reflects reality but also accelerates human progress.
According to Musk, the integration will enable smarter, more meaningful products for billions of users worldwide while staying committed to the mission of truth and knowledge advancement.
Earlier, Elon Musk introduced the third version of the AI model Grok, which significantly outperforms its predecessor — with computing power increased tenfold.
The new AI by xAI includes advanced features such as DeepSearch, image generation, and smart operating modes called Think and Big Brain.
It was also reported that Musk had previously disclosed a large-scale cyberattack on the X platform, involving significant technical resources, which he suggested might indicate involvement from a nation-state.