ISLAMABAD: Billionaire Elon Musk has sold X, formerly known as Twitter, to his artificial intelligence company xAI in a $45 billion transaction. The deal includes $12 billion in debt, valuing X at $33 billion—an increase from Fidelity’s recent estimate but still below Musk’s original $44 billion purchase price in 2022.
Musk said the merger will integrate xAI’s advanced AI models with X’s extensive user base, creating a powerful AI-driven platform. “This combination will unlock immense potential by blending xAI’s AI expertise with X’s reach and data,” he posted.
While immediate changes to X remain unclear, Musk hinted that xAI’s Grok chatbot—already embedded in X—will play a central role in enhancing user experiences. The newly combined entity is now valued at $80 billion, marking a turnaround for X, which had previously lost significant value.
X’s Financial Recovery and Political Influence
After major advertisers left X over content moderation concerns, companies like Amazon and Apple have recently reinvested in ad campaigns, signaling a potential rebound. Additionally, bondholders have sold off X-related debt at 97 cents on the dollar, reflecting renewed investor confidence.
Musk’s political connections have also contributed to X’s resurgence. His role in the Trump administration’s Department of Government Efficiency has strengthened his influence, leading to speculation that investors see Musk’s political clout as a key factor in X’s revival.
Since Trump’s return to office, X has become a major hub for pro-Trump content, with Musk using the platform to promote conservative narratives and amplify Trump’s messaging. This shift has increased X’s relevance as a political and media tool.
The Future of X Under xAI
Musk’s AI ambitions have driven his recent business moves, including an earlier attempt to acquire OpenAI for nearly $100 billion. Now, with the X-xAI merger, AI adoption is expected to accelerate, allowing xAI to roll out new AI-driven tools across the platform.
As X transitions under xAI’s leadership, industry experts are watching closely to see how Musk’s AI vision will reshape the social media landscape—and whether X’s revival will continue in the months ahead.
