Elon Musk announced that his artificial intelligence company, xAI, has officially merged with his social media platform, X. The move, which he described as an all-stock transaction, brings the two privately held companies under one roof.
The merger values xAI at $80 billion, while X, formerly Twitter, is now worth $33 billion. Musk originally bought Twitter for $44 billion in 2022. Since then, he has restructured the platform, aiming to transform it into an “everything app.” Now, xAI and X will share their resources, technology, and workforce to push AI innovation.
Musk explained that combining both companies allows them to join forces in computing power, data, and talent. He believes this will accelerate long-term growth and technological advancements. “The future of AI and social media are deeply connected,” he wrote.
Musk’s AI Vision and Strategic Merger
Industry analysts see this merger as a financial strategy as well as a technological one. Some experts suggest Musk wants to protect investors who helped him acquire X. By merging the two firms, he strengthens their combined value while avoiding financial losses from X’s declining worth.
xAI has already made significant strides in AI development. The company’s chatbot, Grok, was trained using millions of public posts from X. Since its launch, Grok has become an integral part of the platform, reflecting Musk’s focus on artificial intelligence.
Tech analyst Paolo Pescatore called the move a “logical step” as AI infrastructure demands continue to rise. “Merging these companies makes sense when AI is becoming central to digital services,” he said.
Musk’s Battle With OpenAI Intensifies
As Musk pushes his AI ambitions forward, he continues his legal fight against OpenAI and its CEO, Sam Altman. Musk co-founded OpenAI in 2015 but later distanced himself, claiming the company abandoned its original mission. He sued OpenAI last year, arguing that it prioritized profit instead of open-source innovation.
This week, reports surfaced that OpenAI is negotiating a $40 billion investment deal with SoftBank. The funding could further cement OpenAI’s dominance in the AI industry, making it a bigger rival to xAI.
Sources say SoftBank wants OpenAI to restructure as a for-profit company before finalizing the investment. Critics argue Musk’s lawsuit is an attempt to regain control over OpenAI after his previous takeover bid failed.
Earlier this year, Musk made an unsolicited $97.4 billion bid to buy OpenAI, but Altman rejected the offer entirely. Altman confirmed OpenAI would not sell and remains committed to its current path.
Musk’s Expanding Influence in Politics and Business
Beyond business, Musk is playing a growing role in U.S. political affairs. He has been advising former President Donald Trump and influencing federal budget decisions. His involvement in shaping conservative policy has raised eyebrows across the political spectrum.
This weekend, Musk traveled to Wisconsin and donated millions to a state Supreme Court campaign. His financial contributions sparked controversy after the state’s attorney general asked a judge to block him from issuing $1 million checks to voters. Officials worry these payments could sway the election and violate voting laws.
Musk’s political involvement aligns with his broader strategy of influencing regulatory decisions that affect his companies. With xAI and X now operating as a single entity, his control over AI and social media is stronger than ever.