Elon Musk sells X to his AI firm xAI – DW – 03/29/2025 | EUROtoday

Tech billionaire Elon Musk’s xAI synthetic intelligence agency has acquired his social media firm X, previously often known as Twitter, for $33 billion (€30.5 billion).

Musk introduced the transaction in a submit on X, saying: “The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).”

What did Musk say concerning the deal?

“xAI and X’s futures are intertwined,” he wrote. “Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”

Much of the deal’s specifics remained unclear. Both firms are privately held, so they aren’t required to reveal their funds to the general public.

It’s additionally not clear if the transfer will change something for X customers.

Musk purchased X, then known as Twitter, for $44 billion in 2022.

Following the acquisition, he fired most of its workers and adjusted its insurance policies on content material moderation and consumer verification, and renamed it X. The controversial content material insurance policies prompted advertisers to flee the platform and induced a fast decline in income.

Intensifying AI competitors

Musk launched xAI a yr later.

In February, xAI launched Grok-3, the newest iteration of its chatbot, because it tries to compete with Chinese AI agency DeepSeek and Microsoft-backed OpenAI, the maker of ChatGPT.

Amid intensifying competitors in AI area, xAI has additionally been ramping up its information heart capability to coach extra superior fashions.

Musk additionally made a $97.4 billion try with a consortium to amass OpenAI in February.

But the bid was rejected.

Musk, the world’s wealthiest man who serves as CEO of Tesla and SpaceX, has turn out to be a strong determine in Washington since Donald Trump returned to the White House.

He is overseeing the administration’s cost-cutting efforts as head of the so-called Department of Government Efficiency, or DOGE.

Edited by: John Silk