In a Shocking Announcement
In a surprising announcement made Friday afternoon via tweet, Elon Musk revealed that he has sold the social media platform X, formerly known as Twitter, to his AI startup firm XAI for a staggering $45 billion in stock. The deal also includes $12 billion in debt owed by X, underscoring the financial complexities involved in this high-profile transaction.
XAI’s Valuation Takes a Leap
Along with the acquisition, Musk stated that XAI now holds a remarkable valuation of $80 billion. This valuation is notably double the $40 billion benchmark set during a recent funding round, which successfully raised $6 billion for the startup launched by Elon in 2023. This funding surge is a testament to the growing confidence in AI businesses that Musk is driving forward.
@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…
— Elon Musk (@elonmusk) March 28, 2025
A Glimpse into the Platform’s Journey
Remember, Musk initially purchased Twitter in 2022 for $44 billion. The deal was controversial, and shortly after its closure in October of that year, Musk made headlines by firing numerous executives, some of whom he was compelled to rehire to maintain operational stability. After a tumultuous period involving issues such as verification checkmarks and a loss of key advertisers, including Apple, the platform appears to have settled into a more stable rhythm.
As part of his rebranding strategy, Musk transitioned the name from Twitter to X and introduced three tiers of service priced between $4 and $50 per month. This pricing strategy reflects Musk’s vision for X, positioning it as an innovative player within the competitive social media landscape.
