Elon Musk’s latest business transaction has made headlines as he orchestrated a deal with himself. Last week, Musk announced that he had sold X, the social media platform formerly known as Twitter, to his artificial intelligence startup, xAI. The transaction was structured as an all-stock deal, according to Musk.
For several weeks, Musk’s role as a special government employee at the Department of Government Efficiency (DOGE) under the Trump administration has been under scrutiny. Analysts have raised concerns about how much attention he is dedicating to his business ventures, particularly Tesla. However, by merging X and xAI, Musk may streamline his efforts and consolidate his assets.
Financial Valuation of X and xAI
Musk revealed on X that the deal values the social media platform at $33 billion, including $12 billion in debt. Meanwhile, the combined company, xAI, has an estimated valuation of $80 billion.
Musk founded xAI in 2023 as a competitor to OpenAI, the organization he co-founded but later departed. Following OpenAI’s shift from a non-profit to a for-profit model, Musk sued the company, claiming that “only he can responsibly create A.I. that would not destroy humanity.”
