Elon Musk announced on Friday, March 28, 2025, that his artificial intelligence company, xAI, has acquired X, the social media platform formerly known as Twitter. This all-stock transaction values xAI at $80 billion and X at $33 billion, according to CNBC. This surprising move merges Musk’s AI venture with the social media giant he purchased in October 2022 for $44 billion.
This acquisition raises questions about the future direction of both platforms. Musk’s tweet announcing the deal highlighted X as the “real-time source of ground truth” for its 600 million active users globally. However, since acquiring Twitter and rebranding it as X, the platform has faced criticism for its handling of content moderation and the resurgence of extremist views. Musk himself has been accused of spreading misinformation on the platform.
Musk emphasized the synergy between xAI and X, stating in a tweet, “xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent.” He believes this merger will “unlock immense potential” by leveraging xAI’s advanced AI capabilities with X’s extensive reach. The integration of xAI’s technology could potentially transform X’s algorithms, content recommendations, and user experience.
While Musk champions the pursuit of “truth” and “advancing knowledge,” his track record on X has been marked by controversy. The reinstatement of previously banned figures like Alex Jones, despite earlier assurances to the contrary, has raised concerns about the platform’s commitment to combating misinformation. This acquisition raises further questions about how xAI’s focus on truth will reconcile with X’s existing content moderation challenges.
Musk concluded his announcement by thanking the staff at both xAI and X for their “hardcore dedication,” suggesting this is just the beginning of a larger transformation for both entities. The long-term implications of this acquisition for the future of social media and AI remain to be seen. This merger could potentially reshape the landscape of online discourse and information dissemination.
In summary, xAI’s acquisition of X represents a significant development in the tech world, bringing together a leading AI company with a massive social media platform. While the potential benefits of this merger are substantial, concerns surrounding content moderation, misinformation, and the future direction of both platforms persist.
