Elon Musk is known to be eccentric, and one of his most unusual moves is that his AI company xAI purchased X (formerly known as Twitter). The movement is an all-stock transaction, with xAI valued at $80 billion and X valued at $33 billion ($45B less $12B debt).

“This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress,” Musk explained in his post in X.

Those using X will notice that there’s xAI integration already in the platform with Grok, with is Musk’s answer to other AI assistants like ChatGPT, Gemini, and DeepSeek. Aside from that, it remains to be seen how the acquisition of X by xAI will affect the social media platform—especially given how Musk is busy also with government tasks.

Since purchasing Twitter in 2022 and introducing paid services like Twitter Blue, it has been a rocky experience for Musk. Aside from laying off 80% of the company’s staff, messing around with X’s verification system, and reinstate suspended accounts of White Supremacists, the value of X is around 80% less than when Musk acquired it according to Investment firm Fidelity. To date, X was only able to recover about 30% of its value.