Elon Musk announced that xAI has bought X, the social media platform previously known as Twitter.

"@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt)," Musk wrote on X.

Musk founded xAI in March 2023 and is known for developing the AI chatbot Grok, which is integrated into X.

"X is the digital town square where more than 600M 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," said Musk.

He added that the future of xAI and X is "intertwined", and the acquisition marks the step toward recognising the combination.

"This combination will unlock immense potential by blending xAI's advanced AI capability and expertise with X's massive reach. The combined company w ill deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge," he said.

Musk pointed out that the development will allow the companies to accelerate "human progress."

Twitter acquisition

Musk clinched a deal in 2022 to buy X, then Twitter, for $44 billion, ending its run as a public company since its 2013 initial public offering, declaring that "the bird is freed" once the acquisition closed.

He gutted the company's workforce after the acquisition, prompting advertisers to flee the platform and a rapid decline in revenue. Recently, brands have been returning to X as Musk's influence grows in the Trump administration.

The seven banks that extended $13 billion in loans to Musk to buy X kept the debt on their books for two years until they could sell it all at once last month, according to a source familiar with the transactions.

This was made possible after a surge in investor interest for exposure to AI companies along with X's improved operating performance over the previous two quarters, among other factors, according to two people familiar with the matter.