Social media platform X has been sold. Elon Musk announced on Friday that his artificial intelligence company xAI has acquired social media platform X in an all-stock transaction worth $33 billion. Musk wrote in the post, 'xAI has acquired X in an all-stock transaction. The combination values ​​xAI at $80 billion and X at $33 billion. The deal includes $12 billion in debt, bringing X's overall valuation to $45 billion. Since its inception two years ago, xAI has rapidly become one of the world's top AI labs, building models and data centers at tremendous speed and scale.'

The future of xAI and X is interconnected

Musk further said, 'The future of xAI and X is interconnected. Today we are officially taking steps to combine data, models, compute, distribution and talent'. The acquisition comes amid growing AI competition, with Musk trying to put xAI at the forefront of the list of 'truth-seeking' artificial intelligence.

Users will get a smarter experience

Launched in 2023, xAI has introduced Grok. Grok is an AI chatbot integrated into X that gives real-time responses and engages in online debates. Musk has marketed Grok as an alternative to "woke AI". Musk said xAI's cutting-edge AI capabilities combined with X's more than 600 million user base will deliver a smarter and more meaningful experience.

X CEO Linda Yaccarino reiterated Musk's optimism about the deal, writing in a post that the future couldn't be better. Notably, X recently raised nearly $1 billion in new equity, pushing its valuation closer to Musk's 2022 purchase price. The platform is also set for its first year of ad revenue growth since his acquisition.