Elon Musk merges xAI with X: A revolution for artificial intelligence!

Elon Musk merges xAI with X: A revolution for artificial intelligence!

Elon Musk announced today that he will merge his AI company xAI with the social media platform X. The takeover will take place in a stock transaction worth $45 billion, which corresponds to approximately €41.72 billion, including the assumed debt. Musk emphasizes that the future of xAI is closely intertwined with that of X, underscoring the strategic importance of this merger. The new, combined company is valued at a total value of $80 billion.

xAI had recently raised $6 billion in funding from investors, valuing the company at $40 billion. This follows Musk's purchase of X in 2022 for $44 billion, which he completed to delist X.

Benefits of Fusion for AI Development

Musk also announced that the merger also has legal reasons to facilitate the use of user data to train AI models. X, previously known as Twitter, provides user data such as text, images and videos from millions of users. This data is crucial for the development of AI-powered chatbots that xAI produces.

By combining teams, technology, data centers and employees from both companies, not only will efficiency be increased, but also the ability to train advanced AI models. Musk also sees the acquisition as a way to reassure investors who have invested in X as the platform has lost value and advertisers since he took over in 2022.

Open questions about the evaluation of X

Musk points out that An investment firm estimated the value of X at around $10 billion at the end of 2022, showing the uncertainty surrounding the actual valuation.

The move to acquire X also comes against the backdrop of a failed bid by Musk for OpenAI, which was rejected in early February 2025. Musk had offered $97.4 billion for control of OpenAI with a consortium, which decided to retain its independence. OpenAI, known for releasing the popular AI application ChatGPT, plans to become more profit-oriented with the support of major investors such as Microsoft.

The developments surrounding Musk's company are part of an ongoing boom in artificial intelligence, fueled by the success of ChatGPT and similar applications. Future moves by Musk and his ventures will therefore be followed with great interest.