LOS ANGELES – Elon Musk has sold his social media platform X to his artificial intelligence company xAI in a $33 billion all-stock deal, deepening his push to integrate generative AI into one of the world’s most influential tech platforms.

The deal, announced Friday, merges two of Musk’s most high-profile ventures under a single AI-driven vision — and raises new questions about how X could evolve from here.

What is the purpose of the X and xAI merger?

The backstory:

In a post on X, Musk said the transaction will “unlock immense potential” by combining xAI’s advanced artificial intelligence capabilities with X’s massive user base and distribution reach. He emphasized a future in which data, models, compute power, and product development are shared across both platforms.

Musk launched xAI in 2023, a year after acquiring Twitter for $44 billion and renaming it X. xAI’s flagship product is Grok, an AI chatbot that’s already integrated into X for paying subscribers. The company has also used data from X posts to train its language models.

Musk valued xAI at $80 billion and X at $33 billion in the transaction. Both are privately held and are not required to release financial disclosures publicly.

How will the xAI deal reshape Musk’s tech empire?

What we know:

Musk is positioning the new xAI–X combination as a way to deliver “smarter, more meaningful experiences to billions of people,” while also advancing what he described as a shared mission to “seek truth and advance knowledge.” X users may already be familiar with Grok, xAI’s chatbot, which is available to premium subscribers and embedded into the platform’s daily user experience.

Elon Musk looks on during a Cabinet Meeting in the Cabinet Room of the White House March 24, 2025 in Washington, DC. (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images)

As part of Musk’s broader tech empire — including Tesla and SpaceX — the deal signals a continued effort to fuse AI with consumer-facing platforms, using real-world data to power machine learning tools.

What changes might X users see going forward?

What we don’t know:

It’s unclear what, if any, immediate changes X users can expect. xAI was already using X data to train its models, and its chatbot was already integrated into the platform. The deal may signal deeper product convergence, but Musk has not announced any specific updates to user policies or platform features.

There’s also no indication yet of how the sale might affect moderation policies, content governance, or regulatory scrutiny — all areas that have drawn attention since Musk took over Twitter in 2022.

The Source: This article is based entirely on reporting from the Associated Press, including statements posted by Elon Musk on X and data shared in the AP’s coverage of the $33 billion all-stock transaction. No external commentary or analysis has been added.