In a landmark move, South African-born tech billionaire Elon Musk announced on Friday, March 28, 2025, that his artificial intelligence firm, xAI, has acquired the social media platform X, formerly known as Twitter, in an all-stock transaction. This deal values xAI at a staggering $80 billion and X at $33 billion, marking a significant shift in the tech landscape.
Musk, who previously acquired Twitter in October 2022 for $44 billion, described the acquisition as a crucial step toward creating a "common digital town square" where diverse beliefs can be debated without resorting to violence. He emphasized the importance of X as a platform where over 600 million active users seek real-time information and engage in discussions.
In a recent tweet, Musk stated, "X is the digital town square where more than 600 million active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth." He highlighted that the combination of xAI and X's capabilities will unlock immense potential by blending advanced AI technology with X's vast reach.
As of March 28, 2025, xAI and X officially took steps to merge their data, models, compute resources, distribution channels, and talent. Musk noted, "This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. The combined company will deliver smarter, more meaningful experiences to billions of people, while staying true to our core mission of seeking truth and advancing knowledge." He further added, "This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress."
However, Musk's tenure at the helm of Twitter has not been without controversy. Following his acquisition, the platform experienced a notable increase in hate speech, with data indicating that slurs against Black Americans more than tripled in the first three months of his ownership. According to research published by the Los Angeles Times, the daily use of hate speech by users who had previously posted hateful content nearly doubled, leading to significant concerns about the platform's environment.
Numerous celebrities, including Whoopi Goldberg, Toni Braxton, and Shonda Rhimes, departed from the platform during Musk's leadership, raising questions about the direction of X under his management. The rebranding of Twitter to X in July 2023 was part of Musk's broader strategy to reshape the platform's identity.
In addition to his ventures with X, Musk launched xAI in 2023 to compete with OpenAI, the organization he co-founded that developed the popular AI chatbot ChatGPT. After leaving OpenAI, Musk took legal action against the company, claiming that only he could responsibly create AI that would not pose a threat to humanity. This competitive spirit underscores Musk's ambition to lead in the AI domain.
Despite the controversies surrounding his ownership of X, Musk remains optimistic about the future of both xAI and the social media platform. He expressed gratitude for the dedication of the teams at both companies, stating, "I would like to recognise the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning."
As the merger progresses, the implications for both xAI and X could be profound, potentially reshaping how social media interacts with AI technology. The combined entity aims to enhance user experiences while addressing the challenges that have emerged during Musk's leadership.
Observers are keen to see how this bold acquisition will influence the tech landscape and whether Musk's vision for a more responsible and engaging digital town square will materialize. With the stakes higher than ever, the world watches closely as Musk navigates the complexities of merging AI capabilities with social media dynamics.
In a world increasingly reliant on technology for communication and information, the successful integration of xAI and X could set new standards for what users can expect from social media platforms. Whether this merger will lead to a healthier online environment or further exacerbate existing issues remains to be seen.
The future is uncertain, but one thing is clear: Elon Musk's latest venture represents a significant chapter in the ongoing evolution of technology and social media.
