Elon Musk’s artificial intelligence company, xAI, has acquired social media platform X in an all-stock deal, valuing it at $33 billion. The total price tag, including $12 billion in debt, stands at $45 billion.

The merger aims to integrate data, models, and computing resources, potentially enhancing xAI’s chatbot, Grok. Musk, who also leads Tesla and SpaceX, stated that this move intertwines the futures of xAI and X.

Saudi investor Prince Alwaleed bin Talal, a major stakeholder in both firms, praised the deal, anticipating a rise in investment value. However, regulatory scrutiny and leadership structure remain uncertain.

This acquisition strengthens xAI’s position in the AI race, competing with OpenAI and DeepSeek. Meanwhile, X’s improved performance and AI-driven expansion could restore advertiser confidence.