Musk combines social media and AI after selling X to his AI business for $45 billion.

Elon Musk, a billionaire, has announced that his artificial intelligence business, xAI, would purchase X, formerly known as Twitter, for $45 billion. With $12 billion in debt included in the deal, X is valued at $33 billion, which is somewhat more than Fidelity’s most recent estimate but still less than Musk’s initial $44 billion acquisition price in 2022.

Musk, who has significantly altered X since purchasing it, said that by combining xAI’s cutting-edge models with X’s enormous user base, the merger will produce a potent AI-driven platform. He wrote, “This combination will unlock immense potential by combining X’s reach and data with xAI’s AI expertise.”

Musk suggested that xAI’s Grok chatbot, which is currently integrated into X, will be crucial in providing “smarter, more meaningful experiences,” even though no immediate improvements to X were disclosed. A significant turnaround for X, which was previously thought to be worth 80% less than Musk’s acquisition price, is the new merged entity’s valuation of $80 billion.

X’s Political Power and Economic Recovery
Amazon and Apple have recently reinvested in ad campaigns on X, suggesting a possible comeback after big advertisers left the site over content moderation issues. Rekindled investor confidence was also demonstrated by a group of bondholders who were able to sell off billions of dollars’ worth of X-related debt for 97 cents on the dollar.

X’s comeback has also been influenced by Musk’s political connections. Because of his powerful position in the Trump administration’s Department of Government Efficiency, there is conjecture that investors are placing more bets on Musk’s political influence than X’s financial performance.

With Musk utilizing the platform to promote conservative narratives and reinforce Trump’s campaign rhetoric, X has emerged as a major source for pro-Trump material after Trump’s return to government. Because of this, X is now a crucial instrument for monitoring the administration’s operations, increasing its applicability and possible profitability.