Tech Desk 
Mar 29, 2025
Tesla CEO Elon Musk at a European Jewish Association conference in Krakow, Poland, on Jan. 22, 2024. — Reuters
Elon Musk’s xAI has officially acquired X to enhance the chatbot’s capabilities, particularly in training its AI chatbot, Grok, by utilising X’s vast user data and computing resources.
The all-stock transaction values X at $33 billion, while the total deal, including $12 billion in debt, amounts to $45 billion.
Elon Musk’s xAI buys X
Musk announced the deal in a post on X, highlighting that this merger aligns the future of both companies. He said that the integration would combine data, computing power, and best talent, fueling innovation within xAI.
Notably, the AI firm, worth $80 billion at the moment, faces competition from sector giants such as OpenAI and China's startup DeepSeek.
As xAI ramps up its AI operations, the integration of X's real-time data stream would greatly enhance the training of Grok. The firm has already achieved significant advancements with Grok-3, its newest AI chatbot, and is building one of the world's largest AI supercomputer clusters, "Colossus," in Memphis, Tennessee.
Moreover, the Saudi Prince Alwaleed bin Talal, one of the major investors in both X and xAI, was also a supporter of the deal, saying that it would increase the worth of his investments to almost $5 billion. Financial experts also noted that the $45 billion price is slightly higher than the $44 billion Musk paid for Twitter in 2022.
