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Elon Musk Sells X to xAI in $33 Billion Deal: What Is xAI, What Does It Do, and Who Owns It?

Elon Musk merges his social media platform X with his AI startup xAI to “unlock immense potential.” Here’s everything you need to know about xAI and what this $33 billion acquisition means.

March 29, 2025: What Just Happened?

In a bold move that merges social media with artificial intelligence, Elon Musk has sold X (formerly Twitter) to his AI venture xAI in an all-stock deal valued at $33 billion. Musk says the goal is to blend X’s massive global reach with xAI’s cutting-edge AI capabilities.

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“xAI and X’s futures are intertwined… This combination will unlock immense potential,” Musk wrote on X.

🤖 What is xAI?

xAI stands for “X Artificial Intelligence”, a public-benefit corporation based in the San Francisco Bay Area, launched by Elon Musk in March 2023. Officially unveiled in July 2023, the company aims to:

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“Understand the true nature of the universe”
Develop AI tools that solve real-world problems
Innovate rapidly with a team of ex-OpenAI, Google DeepMind, and Tesla engineers

Their flagship product? Grok, an AI chatbot integrated into X in late 2023, which has since gained traction globally — especially in India.

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🔎 What Does xAI Do?

Builds AI models to compete with OpenAI, Google, and Meta
Focuses on AI alignment, truth-seeking, and general intelligence
Develops AI tools like Grok, with potential applications in search, content generation, and knowledge enhancement

Their website states:

“We’re not interested in speed for speed’s sake—we’re here to solve real problems.”

👨‍💼 Who Owns xAI?

xAI is privately owned by Elon Musk, who remains the company’s key figure. While it’s unclear who else has a stake, xAI’s core team includes:

Igor Babuschkin, ex-Google DeepMind (Chief Engineer)
A small elite group of AI researchers and developers, many of whom have worked on GPT and Tesla’s AI systems

💡 Why Did Musk Sell X to xAI?

Musk believes this merger can supercharge innovation by:

Combining X’s data and user base with xAI’s AI models
Accelerating Grok’s rollout and evolution
Enabling smarter, more personalized features on the X platform
Positioning X as the ultimate AI-powered “everything app”

The deal also values xAI at $80 billion, boosting its profile as one of the most valuable private AI companies globally.

🌐 What’s Next for X Users?

Expect deeper AI integration into the X app
Grok AI will likely become more advanced and widely available
Possible rollout of new AI-driven features like smart feeds, assistants, content moderation, and discovery tools

Musk hinted the combined company will focus on delivering “meaningful experiences to billions while staying true to the mission of seeking truth.”

🏷️Tags:

#ElonMusk, #xAI, #XformerlyTwitter, #GrokAI, #ArtificialIntelligence, #AInews, #TechMergers, #SocialMediaAI, #TwitterAcquisition, #XxAIMerger, #ElonMuskNews,

Misha Bhatia