Elon Musk Sells X to xAI in $45 Billion Deal

[Social Media]

 

Elon Musk has announced that he has sold his social media platform, X, to his artificial intelligence company, xAI, in a deal worth $45 billion. The sale price slightly exceeds what Musk originally paid for X in 2022, though the transaction includes $12 billion in debt. Musk revealed the deal’s terms on his X account, stating that it values the platform at $33 billion.

 

 

“xAI and X’s futures are intertwined,” Musk posted on X. “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.”

 

 

While no immediate changes to X were announced, xAI’s Grok chatbot has already been integrated into the platform. Musk suggested that the merger would enhance user experiences, describing it as a move to “deliver smarter, more meaningful experiences.” He also claimed the combined company now holds a valuation of $80 billion.

 

Since acquiring X, formerly known as Twitter, in 2022, Musk has implemented sweeping changes that have driven some advertisers away. He cut 80% of the company’s workforce, altered its verification system, and reinstated previously suspended accounts, including those linked to White supremacist content. Despite a period of financial downturn, X’s valuation appears to have rebounded. In October, Fidelity estimated that the company had lost nearly 80% of its value since Musk’s takeover. By December, X had recovered slightly but was still valued at only 30% of what Musk initially paid.

 

Musk’s role in the Trump administration, particularly at the Department of Government Efficiency, has raised concerns about how he balances his responsibilities across his various enterprises, including Tesla. The merger of X and xAI could streamline his business interests and further his ambitions in AI, an industry that remains a central focus for both the tech sector and the Trump administration. Earlier this year, Musk led an investor group attempting to purchase OpenAI, the creator of ChatGPT, for nearly $100 billion, escalating his rivalry with OpenAI CEO Sam Altman. While the precise benefits of merging X with xAI remain unclear, greater integration between the platforms could enable xAI to deploy its latest AI advancements to a massive audience more efficiently.

 

X’s resurgence is evident, with major advertisers like Amazon and Apple reportedly returning to the platform. Their renewed investment marks a shift after many advertisers had previously abandoned X due to concerns over hate speech and the placement of ads alongside pro-Nazi content. X later restricted some pro-Nazi accounts from receiving ad revenue, which may have played a role in advertisers reconsidering their stance.

 

The brand’s stabilization has also benefited bondholders who had previously faced losses on X debt holdings. Recent reports indicate that billions of dollars in X debt were sold at 97 cents on the dollar, albeit with high-interest rates. In February, Bloomberg reported that X was in talks to raise funds that would value the company at $44 billion, though it is unclear why xAI’s valuation of X is slightly lower.

 

A significant factor in X’s financial recovery is xAI itself. Reports suggest X held a stake in xAI, and last month, xAI was reportedly seeking a $75 billion valuation in a funding round. However, Musk’s influence is likely the most crucial element in X’s turnaround. His elevated role as a special government employee under President Donald Trump has granted him substantial influence within the federal government, allowing him to shape policy in ways that could benefit his companies.

 

Investors placing their bets on X appear to be investing in Musk himself rather than the company’s fundamentals. Last year, he transformed X into a powerful pro-Trump platform, using it to amplify the former president’s campaign. Musk has also used his massive following of 200 million users to push conspiracy theories about immigration policies under the Biden administration and repeatedly referenced the “woke mind virus,” a phrase popular among conservative circles.

 

With Trump back in office and Musk involved in the executive branch, X has once again solidified its position as a key social media platform for tracking and engaging with the Trump administration. Additionally, Musk has leveraged X as a medium to communicate changes and updates related to his role at the Department of Government Efficiency.

 

 

Based on a report by CNN  2025-03-29

 

 

[KhunLA]

'Sweeping changes' ...

 

... allowing free speech once again

... getting rid of staff that restricted free speech or simply weren't needed

... cut all censoring from the acronym folks

 

It's a beautiful thing 

 

 

[Cryingdick]

X and Tesla probably have more data between them than any other place on earth. This is going to really help him with AI and machine learning. Other companies pay something like Reddit to harvest data. This is a big deal. God that Elon is a moron.

[Tug]

45 minutes ago, Cryingdick said:

X and Tesla probably have more data between them than any other place on earth. This is going to really help him with AI and machine learning. Other companies pay something like Reddit to harvest data. This is a big deal. God that Elon is a moron.

Elon is a brilliant engineer none better hands down,but on the flip side he’s an arrogant a$$hole now he can harvest all the goings on  at x the massive troll factory combine it with AI and turn it loose on the world.this bodes ill for freedom in my view it’s more about control.

[Airalee]

8 minutes ago, Tug said:

turn it loose on the world.this bodes ill for freedom in my view it’s more about control.

Kind of like the lefts desire to see everybody jabbed with the clot shot.

 

Gotcha.

[Cryingdick]

It's a very DOGE like thing to do. 

[biervoormij]

Bought for 44 billion and sold for 45 billion. Valued at 33 billion. This all seems like very strange accounting but I am sure there will not be any capital gain taxes paid on the 1 billion he made in profit.

[SiSePuede419]

 

“Musk has gone out of his way to insult [liberals]. I lived in LA during the time when everyone who was wealthy and liberal traded their Toyota Prius in for their Tesla during 2014-2015.”

 

Holding a banner attached to a Donald Trump toilet brush, she said: “I used to not hesitate to say I’m an American. Now actually I’m working with an acting coach, to fake a British accent so I can turn it on and off when I want to. I don’t want to be identified as American.”

 

No one likes Musk anymore.

 

Musk is a cheapskate who wears the same "Tech Support" t-shirts and eats peanut butter out of a jar when he comes down from the k and supposedly cares about money.

 

But he sure makes a lot of boneheaded 100% avoidable mistakes that's cost him and other investors lots of money. 🔥💰

[candide]

9 hours ago, Cryingdick said:

X and Tesla probably have more data between them than any other place on earth. This is going to really help him with AI and machine learning. Other companies pay something like Reddit to harvest data. This is a big deal. God that Elon is a moron.

No. It's Alphabet (Google), by far.

 

Meta and Microsoft also fare better than X on this respect.

[candide]

1 hour ago, biervoormij said:

Bought for 44 billion and sold for 45 billion. Valued at 33 billion. This all seems like very strange accounting but I am sure there will not be any capital gain taxes paid on the 1 billion he made in profit.

Basically, he sold it to himself! 🙂

[SiSePuede419]

10 hours ago, Cryingdick said:

X and Tesla probably have more data between them than any other place on earth. This is going to really help him with AI and machine learning

Yes, I hear FSD is right around the corner for 10 years now.

 

It's almost like he makes promises and no one seems to care that he breaks them every year.

 

Way to hustle, Musk. ⚽

 

Only now he's not hustling Liberals to buy his cars, he's hustling Americans to believe Grandma's SS check is "waste, fraud and corruption".

 

Why, Grandma hasn't shown up for work for decades, but she's still getting a check. 

 

Fraud! 😁

[Cryingdick]

7 hours ago, candide said:

No. It's Alphabet (Google), by far.

 

Meta and Microsoft also fare better than X on this respect.

 

It's actually probably the Chinese government. 

[candide]

3 minutes ago, Cryingdick said:

 

It's actually probably the Chinese government. 

On Chinese citizen, certainly.

[jas007]

Next, will we see Tesla buying them both?  

 

It might be a good idea to buy some Tesla stock at these levels.

 

Bookmark this post 

[Liverpool Lou]

8 hours ago, biervoormij said:

Bought for 44 billion and sold for 45 billion. Valued at 33 billion. This all seems like very strange accounting but I am sure there will not be any capital gain taxes paid on the 1 billion he made in profit.

Why?   What makes you think that any tax that is due will not be paid.

[Cryingdick]

7 minutes ago, candide said:

On Chinese citizen, certainly.

Google from maps and search, Meta of course and i think has maybe less data but more specific data, Microsoft has a lot but don't see it being in the same league. It's the social media places that give the most unique data. 

 

Which leads me to X and tesla. 

 

Edited: I just thought of Youtubew so yeah Google is a data giant along with YouTube TV.

[Cryingdick]

2 minutes ago, jas007 said:

Next, will we see Tesla buying them both?  

 

It might be a good idea to buy some Tesla stock at these levels.

 

Bookmark this post 

 

Might be a good time to sell if Musk is consolidating his private holdings. Musk hates that Tesla is public and regrets listing it. No way in hell he merges any of his private babies into it. 

[Liverpool Lou]

8 hours ago, SiSePuede419 said:

No one likes Musk anymore.

Speak for yourself, you're in no position to make a fallacious statement such as that.

[Cryingdick]

10 minutes ago, candide said:

On Chinese citizen, certainly.

well Tik Tok has been sucking the souls out of Americans for how long? 

[Chomper Higgot]

Musk sells a business he controls at a price above its market value to another business he controls.

 

He’s robbing the gas meter.

 

 

[Cryingdick]

4 minutes ago, Chomper Higgot said:

Musk sells a business he controls at a price above its market value to another business he controls.

 

He’s robbing the gas meter.

 

 

 

It's normal and basically just a merger.

[CallumWK]

Trump will subsidize AI massively, hence since X is now under the umbrella of xAI, musk will recover much of his losses generated by buying Twitter at inflated price

[candide]

12 minutes ago, Cryingdick said:

Google from maps and search, Meta of course and i think has maybe less data but more specific data, Microsoft has a lot but don't see it being in the same league. It's the social media places that give the most unique data. 

 

Which leads me to X and tesla. 

 

Edited: I just thought of Youtubew so yeah Google is a data giant along with YouTube TV.

Google from search, android and its apps, plus YouTube. Re. Social media, Meta dominates with Facebook, Instagram, messenger, whatsap and Threads.

 

A good proxy of the value of data is add revenues. X weights peanuts.

https://quartr.com/insights/company-research/the-rise-of-google-meta-amazon-and-youtube-in-advertising

[placeholder]

17 hours ago, Airalee said:

Kind of like the lefts desire to see everybody jabbed with the clot shot.

 

Gotcha.

They even wanted Republicans to survive. It's a pity so many more of them died than did Democrats because they held beliefs like yours.

[biervoormij]

1 hour ago, Liverpool Lou said:

Why?   What makes you think that any tax that is due will not be paid.

It is just a guess. If he was going to have to pay the 20% capital gains tax on the 1 billion I think he would have only got the 44 billion that he invested. I really don't know so your guess is as good as mine but do you think he does not have a way to offset the capital gains? He has also fired a lot of the IRS staff and the inspector generals that would look into this.

 

Rich people in the US find ways out of paying taxes and most of them pay a lower percentage than the working class. A middle class worker is in the 28% tax bracket but long term capital gains are taxed at a max of 20%, Trump as a billionaire has had years where he paid $0 federal tax and as someone that is not a billionaire I can not say that.

[jas007]

10 hours ago, Cryingdick said:

 

Might be a good time to sell if Musk is consolidating his private holdings. Musk hates that Tesla is public and regrets listing it. No way in hell he merges any of his private babies into it. 

I certainly wouldn't be selling Tesla here.  FSD, Optimus robots, Robotaxis.  All worth much more than the current Tesla stock price.  I should have bought Tesla a long time ago, but I did buy a bunch when it was around $150 and more recently added a little to that.  I should probably buy more, and it looks like I might get a chance to add if the market keeps correcting.  People will be selling everything, including stocks they probably shouldn't sell at all.  

[Pouatchee]

funny... i am just watching this... enjoy

 

https://ww4.123moviesfree.net/movie/the-real-chatgpt-creator-or-terminator-1630857445/

 

[Chomper Higgot]

11 hours ago, Cryingdick said:

 

It's normal and basically just a merger.

Paying vastly over the market value is not normal.

[Chomper Higgot]

10 hours ago, CallumWK said:

Trump will subsidize AI massively, hence since X is now under the umbrella of xAI, musk will recover much of his losses generated by buying Twitter at inflated price

Oh another federal cash handout to the nation’s biggest ‘welfare junkie’.

 

 

[jas007]

10 hours ago, Cryingdick said:

Google from maps and search, Meta of course and i think has maybe less data but more specific data, Microsoft has a lot but don't see it being in the same league. It's the social media places that give the most unique data. 

 

Which leads me to X and tesla. 

 

Edited: I just thought of Youtubew so yeah Google is a data giant along with YouTube TV.

But the mere amount of data isn't really the issue, is it?  Without more, a pile of data isn't very useful. Look at Palantir and how they're becoming so successful. For them, data is just a commodity these days and isn't necessarily that useful. What's more important is the relevancy of the data and how that data is synthesized and put to use.  While other companies are compiling data, putting that data to good use is another matter, especially across multiple platforms and systems. Palantir has an "operating system" to integrate all data stacks and put it to use. The company has been developing the software for years and they have no real competition.  Their software is available now and it works. 

 

A revolution in transportation is a big deal. Huge. Tesla will be very valuable because of FSD, which will be in use around the world, and not just in Tesla cars. The software will be available for rent to companies like Uber. Tesla's FSD computers are "edge" computers.  Each car has one. They function independently from the cloud, which is better for several reasons, but the Tesla car computers are periodically updated with new algorithms as the Tesla fleet continues to add and learn from new data.  Machine learning speeds up the process, and the hardware is getting better more quickly than many people thought possible.  There's a big fleet of Tesla cars, and they add more data every day.  Tesla doesn't just have data. It has very valuable data and the accumulation of that data is exponential.  And there's only one focus:  driving cars better than humans. 

 

I wish I knew more about this stuff, but I sort of get what they're trying to do.