Catenaa, Monday, March31, 2025- Elon Musk has sold social media platform X to his artificial intelligence firm xAI in an all-stock deal, valuing xAI at $80 billion and X at $33 billion, the billionaire announced Friday.
The move comes as Musk faces renewed legal pressure after a U.S. judge rejected his bid to dismiss a class-action lawsuit accusing him of misleading Twitter shareholders before his 2022 acquisition. Critics argue the deal exposes xAI to legal risks.
Venture capitalist Adam Cochran called the valuation “inflated” and suggested the sale could allow Musk to shift user data to xAI. Others defended the transaction, citing Grok, xAI’s AI chatbot, as a leading model.
Musk framed the acquisition as a strategic alignment, writing on X, “This combination will unlock immense potential by blending xAI’s advanced AI capabilities with X’s massive reach.”
The legal and financial implications of the deal remain uncertain as regulatory scrutiny intensifies.
