March 29, 2025: In a surprising yet strategic move, Elon Musk's artificial intelligence startup xAI has acquired X, the social media platform formerly known as Twitter, for $33 billion. The all-stock deal consolidates Musk's ventures, potentially enhancing the AI capabilities of xAI's language model, Grok.

Announcing the acquisition on X, Musk stated, "The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt). xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution, and talent."

This move further extends Musk’s influence across multiple industries, adding to his portfolio that already includes Tesla and SpaceX. However, key details about the deal remain unclear, including investor compensation, leadership restructuring, and potential regulatory challenges.

Industry experts have expressed mixed reactions. Paolo Pescatore, an analyst at PP Foresight, remarked, "This development feels surprising and somewhat unexpected. To a certain extent, it closes a chapter in the turbulent saga of X." Meanwhile, DA Davidson & Co analyst Gil Luria noted that the valuation of $45 billion was significant, being slightly higher than Musk’s 2022 purchase of Twitter.

Beyond business, Musk has also solidified his presence in Washington, D.C., as head of the Department of Government Efficiency (DOGE) under the Trump administration. This role gives him potential leverage over regulatory agencies that oversee his enterprises.

An investor in xAI, speaking anonymously to Reuters, viewed the move as a natural step in Musk’s strategy. "He didn’t ask for investor approval, but given how closely xAI and X have already been working, the integration makes sense," they said.

As the tech world watches closely, the merger signals a new era where AI and social media become more deeply interconnected under Musk’s leadership.