Techbytes: Musk sells X to xAI for $45 billion, strengthening AI push

Elon Musk announced Friday that he has sold his social media platform, X, to his artificial intelligence company, xAI, for US$45 billion.

The deal, which includes US$12 billion in debt, values X at US$33 billion.

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In a report by CNN on Friday, Musk said the acquisition would merge X’s vast user base with xAI’s advanced AI capabilities, calling it a move that will “unlock immense potential.”

xAI’s Grok chatbot was already integrated into X, and Musk hinted at further AI-driven improvements.

X’s valuation has fluctuated since Musk’s $44 billion purchase in 2022. Investment firm Fidelity estimated its worth had plummeted nearly 80 percent by late 2023 before rebounding.

The deal also follows renewed advertiser interest, with brands like Amazon and Apple reinvesting in X campaigns.

The sale strengthens Musk’s AI ambitions amid his efforts to rival OpenAI.

It remained unclear how xAI’s acquisition of X will reshape the social media landscape, but it positions Musk more prominently in the AI industry.

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