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This article was generated using artificial intelligence (LMStudio) on 2025-03-29T22:49:24.010927. The original article can be found at https://www.wired.com/story/xai-x-acquisition-deal/.
Elon Musk’s artificial intelligence company, xAI, has formally acquired the social media platform X (formerly Twitter) through an all-stock transaction. The agreement values X at $33 billion, incorporating approximately $12 billion in outstanding debt. This announcement was made public on Friday by Mr. Musk himself. The move signifies a closer integration between xAI’s AI development efforts and X’s existing social media infrastructure.
The acquisition follows recent financial activity surrounding X. Just weeks prior, the company reportedly secured roughly $1 billion in additional debt financing, placing its valuation at $44 billion – mirroring the price Mr. Musk initially paid for Twitter three years ago. According to xAI and X leadership, combining resources will leverage xAI’s advanced AI capabilities alongside X’s extensive user base and distribution channels to foster significant growth potential.
Both Linda Yaccarino, CEO of X, and Igor Babuschkin, co-founder of xAI, publicly endorsed the merger via posts on the platform. Ms. Yaccarino expressed optimism about the future, while Mr. Musk opted to share Mr. Babuschkin’s message. Details regarding the structure of leadership within the combined entity remain unclear, including whether Ms. Yaccarino will continue in her current role.
The acquisition also sheds light on X’s financial history since its purchase by Mr. Musk. The initial 2022 acquisition involved securing substantial loans from Wall Street institutions to finance the deal. Subsequently, a decline in advertising revenue at X reportedly made it difficult for these lenders to resell those debts, an issue that was characterized as a challenging situation for investment banks reminiscent of the financial crisis era.
Requests for comment regarding the acquisition’s impact on X’s employees and operational changes were not immediately answered by Mr. Musk, Ms. Yaccarino, or Robert Keele, head of xAI’s legal team. Further details are anticipated as the integration process unfolds.
Original author: Zoë Schiffer Louise Matsakis