Elon Musk announced that X (formerly Twitter) is now officially owned by xAI, his own AI company, through an all-stock transaction.
According to Musk, the merger of X and xAI will strengthen their data, AI models, compute power, and distribution, which will provide smarter and more meaningful experiences for billions of people.
Musk bought X in 2022 for $44 billion USD, but it is now estimated to be worth just $33 billion USD. Meanwhile, xAI, which created Grok AI, has a valuation of $80 billion USD after the merger.
According to Emerge, Fidelity Investments's last forecast in October 2024 put the value of X at just $9.4 billion USD. Although it increased by the end of the year, it remained 77% lower than the original purchase price.
The report also said that the merger of X and xAI could provide access to new investors, improve valuation, and move away from the negative image of the Twitter takeover. At the same time, the company has $12 billion USD in debt to deal with after the sale.
