Elon Musk says xAI has acquired X

Elon Musk said on Friday that xAI has acquired X, the social media app previously known as Twitter.

Why it matters: This is Musk trying to prevent his Twitter investors from losing money, and highlights his eagerness to meld different parts of his corporate empire.

Zoom in: Musk said that the all-stock merger valued xAI at $80 billion and X at $45 billion (including $12 billion of debt). A source familiar with the situation says that the combined company would be valued at xAI plus X, absent some small adjustments.

• For context, Musk paid $44 billion to buy Twitter in late 2022, and some of its investors had marked the shares down by more than 70%. xAI was most recently valued at $50 billion, in a late 2024 fundraising round.
• The two companies have many shareholders in common, including venture firm Sequoia Capital and mutual fund manager Fidelity.

What Musk's saying: "xAI and X's futures are intertwined. 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."

This is breaking news. Check back for updates.