Musk Merges X and xAI in $113B Shake-Up
2 min read Elon Musk just merged xAI and X into a $113B giant called xAI Holdings. It’s not just a business move—it’s Musk consolidating AI power, data, and distribution under one roof. X fuels the data, Grok delivers the product. The AI-media machine is now official. March 31, 2025 11:57
Elon Musk just pulled off one of his boldest moves yet. His AI startup, xAI, has officially acquired the social media platform X (formerly Twitter) in an all-stock deal. The two companies will now operate under a new parent company: xAI Holdings, valued at over $100 billion.
The Details:
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The deal values xAI at $80B and X at $33B, with $12B in debt included—bringing X’s enterprise value to $45B.
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The merger formalizes what was already happening: xAI’s Grok chatbot is deeply integrated into X, using its user data for AI training.
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Musk said the companies’ futures are “intertwined,” blending AI development with the social reach of X.
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Under xAI Holdings Corp., Musk plans to combine data, models, compute, distribution, and talent—creating a tightly integrated AI-media powerhouse.
Why It Matters:
This move cements what many already suspected: X was always more than just a social platform—it’s a strategic data engine for Musk’s AI ambitions.
Since acquiring Twitter in 2022, Musk has transformed it into X with big (and bumpy) changes. Now, with Grok gaining traction and AI at the center of Musk’s vision, this consolidation gives him even more centralized control over one of the most valuable feedback loops in tech: data in, AI out.
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