Musk's xAI buys Musk's X social media platform for $33 billion

Record ID: 1986691

  • Title: Musk's xAI buys Musk's X social media platform for $33 billion
  • Date: 29th March 2025
  • Summary: BANGKOK, THAILAND (MARCH 29, 2025) (REUTERS) COLLAPSED CONSTRUCTION SITE VARIOUS OF MEN STANDING AND WATCHING FROM BEHIND CORDON VARIOUS OF EXCAVATORS WORKING AT SITE RUBBLE AT SITE WOMAN CRYING RELATIVES HOLDING HANDS FRIENDS AND RELATIVES OF MISSING CONSTRUCTION WORKERS SITTING AROUND WOMAN WIPING TEAR OFF ANOTHER WOMAN MAN LOOKING ON (SOUNDBITE) (Thai) 38-YEAR-OLD THAI
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  • Keywords: Musk Twitter X buy social media xAI
  • Location: VARIOUS
  • City: VARIOUS
  • Country: US
  • Topics: Company News Markets,Economic Events,North America
  • Reuters ID: LVA002260028032025RP1
  • Aspect Ratio: 16:9
  • Story Text: Elon Musk's xAI artificial intelligence firm has acquired Musk's X, the social media outfit formerly known as Twitter for $33 billion.
    The all-stock deal announced on Friday (March 28) consolidates two of Musk's multiple portfolio companies, which also include automaker Tesla and SpaceX, and potentially eases the billionaire's ability to train his AI model known as Grok. Including $12 billion in debt, the deal is valued at $45 billion.
    Musk announced the transaction in a post on X, saying that the combined entity would be valued at $80 billion.
    "xAI and X's futures are intertwined," wrote Musk. "Today, we officially take the step to combine the data, models, compute, distribution and talent."
    Neither X nor xAI spokespersons immediately responded to a request for comment. Some of the deal's specifics were not yet clear, such as whether investors approved the transaction or how investors may be compensated.
    Musk, the world's wealthiest man, has also consolidated his power in Washington, D.C. by overseeing the Trump administration's cost-cutting efforts as head of the so-called Department of Government Efficiency, or DOGE.
    His xAI startup was launched less than two years ago and recently raised $6 billion in a funding round that valued the company at $40 billion, sources told Reuters earlier.
    As competition in AI intensifies, xAI has been ramping up its data center capacity to train more advanced models, and its supercomputer cluster in Memphis, Tennessee, called "Colossus," is touted as the largest in the world.
    xAI introduced Grok-3, the latest iteration of its chatbot, in February, as it tries to compete with Chinese AI firm DeepSeek and Microsoft-backed OpenAI.
    Musk clinched a deal in 2022 to buy X for $44 billion, ending its run as a public company since its 2013 initial public offering, declaring that "the bird is freed" once the acquisition closed.
    (Production: Bernat Parera)
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