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Elon Musk has actually sold X to xAI for $33 billion in an all-stock deal, The deal values xAI at $80 billion and X at $33 billion. Musk believes this merger will "unlock immense potential" by combining xAI's advanced AI capabilities with X's massive user base.
This move is seen as a strategic step to integrate AI with social media, aiming to deliver smarter and more meaningful experiences to users. XAI, founded by Musk in 2023, is a leading AI lab focused on building models and data centers at unprecedented speed and scale.
It's worth noting that Musk had purchased X, then known as Twitter, for $44 billion in 2022. The new deal includes no debt for X, but the overall deal value is $45 billion when including $12 billion of debt for xAI.