Elon Musk has sold his social media platform X to his artificial intelligence company, xAI, he announced on Friday (Mar 28).

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According to Musk, xAI will pay $45 billion for X and would also buy the company's $12 billion worth of debt.

What is X's new value?

The $45 billion deal, which includes $12 billion in debt, values X at $33 billion—slightly higher than recent estimates but still well below what Musk originally paid for the platform in 2022. 

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In a post on X, Musk called the move a natural progression, stating that "xAI and X’s futures are intertwined." He emphasised that the merger would combine "data, models, compute, distribution and talent."

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"This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach," he said, adding that this move would help the company "deliver smarter, more meaningful experiences" by "blending xAI’s advanced AI capability and expertise with X’s massive reach".

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The combined company's estimated value now stands at $80 billion. 

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Twitter vs X 

In 2022, Musk paid $44 billion for Twitter, later changing the social media company's name to X.  

Since acquiring the platform, Musk has enacted sweeping changes, from slashing 80 per cent of the workforce to overhauling its verification system. His policies—including reinstating accounts banned for hate speech—drove major advertisers away, leading to a steep decline in the company’s valuation.  

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Investment firm Fidelity, which holds a stake in X, estimated late last year that the company had lost nearly 80 per cent of its value post-acquisition. With a slow recovery, by December, X was worth around 30 per cent of what Musk paid for it.

X's recent valuation rebound appears closely tied to xAI's rise. As per Bloomberg, last month, the AI company was seeking a $75 billion valuation in a funding round.

The acquisition comes amid growing scrutiny of Musk's role in the Trump administration, where he is in charge of the Department of Government Efficiency (DOGE). His involvement in government affairs has raised concerns over whether he is spread too thin across his business empire, particularly at Tesla.  

(With inputs from agencies)