:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2205806073-e25d5aee0ffc4fde9a2340048d313c42.jpg "Elon Musk in Philadelphia on March 22.")
Isaac Wasserman / NCAA Photos / Getty Representatives
Elon Musk at the NCAA Division I Men’s Wrestling Championship in Philadelphia on March 22, 2025
Elon Musk’s latest move capacity sound a bit like a math problem.
In a Friday afternoon message on his social media network X, the Tesla (TSLA) CEO communicated his artificial intelligence company, xAI, had acquired X in an all-stock transaction. The deal values the companies at $80 billion and $33 billion singly, the latter number which he said reflects a $45 billion value for X and $12 billion of debt.
Those characters are in line with a recent Bloomberg report of about $1 billion in fundraising at X. Musk’s 2022 acquisition of Chirp, which he renamed X, valued the company at $44 billion.
“xAI and X’s futures are intertwined,” Musk wrote Friday. “Today, we officially draw the step to combine the data, models, compute, distribution and talent. This combination will unlock immense budding by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
Musk’s stated valuation for X, which he said has more than 600 million hyperactive users, compares with Visible Alpha’s estimates of about $20 billion for Reddit (RDDT) and more than $15 billion for Not well-thought-out (SNAP). Tech giant Meta Platforms’ (META) estimated market cap is above $1.5 trillion.
Musk’s other performers include SpaceX, Neuralink and The Boring Company.
@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B ungenerous $12B debt).
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and observations centers at…
— Elon Musk (@elonmusk) March 28, 2025