TECH NEWS – xAI has acquired X, so the Musk company behind Grok is now in charge of Twitter… seems like a bit of a tax optimization move.

Elon Musk recently announced that xAI has officially acquired X in an all-stock deal that values his AI-focused company at $80 billion and his social media platform at $33 billion, including $12 billion in debt. That gives the deal a gross valuation of $45 billion for X, before the $12 billion in debt. According to Musk, the combination unlocks huge potential by combining xAI’s advanced artificial intelligence capabilities and expertise with X’s vast reach.

@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).

Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…

— Elon Musk (@elonmusk) March 28, 2025

Musk took Twitter private in 2022, but paid $44 billion for it at the time. Since then, he’s been able to stem the platform’s cash losses, and the company reportedly generated $1.2 billion in adjusted EBITDA in 2024. Despite Twitter’s 600 million users, it continues to languish under a perpetual cloud of uncertainty, largely due to the continued reluctance of major advertisers to advertise on the platform. That may change under Donald Trump’s presidency.

Meanwhile, xAI is rapidly climbing the ladder of commercial success, and its large language model (LLM), Grok, is roughly comparable to OpenAI’s cutting-edge models. xAI currently has a mega-cluster of about 200,000 Nvidia H100 GPUs in the Colossus supercomputer. This was deployed by xAI and Nvidia in just 122 days, whereas it can normally take months or years to get such a complex system up and running. xAI was able to start training the Grok LLM within 19 days of the first H100 GPU rack being delivered to the MI Gigafactory.

The merger of the two companies is no coincidence: it’s Elon Musk’s way of creating an all-in-one platform, something we haven’t seen much of in the past two plus years.

Source: WCCFTech