Elon Musk Sells X – What Now?

Elon Musk, said to be the wealthiest man on Earth, announced the sale of his social media platform on X (March 28). In an all-stock transaction, Musk sold the enterprise to xAI – another one of his companies – for $45 billion minus its $12 billion debt. This move puts the value of X at $33 billion.

“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI (artificial intelligence) 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.”

X currently boasts 600 million active users, and Musk’s chatbot, known as GROK, has already been integrated into the social media behemoth. Those who publish on X for free can use Musk’s AI platform “on a limited basis.” GROK is but one of several artificial intelligence concerns competing for marketplace dominance, including Gemini, ChatGPT, and Claude.

AI is a computer system capable of providing users with the ability to complete tasks that humans typically do. It’s controversial because AI “thinking” can mimic humans in many ways but can also make large-scale errors. Musk hinted in his post that his AI enterprise is still in its early stages: “Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale.”

Elon Musk Knows How to Play the Game

Because both X and xAI are privately held companies, Musk could consolidate the two without the approval of investors. Media reports differ on the value of xAI, with some saying it is worth $75-$80 billion while others claim it’s closer to $40 billion. Any which way you look at it, the move is said to be a shrewd one. “The deal shows how Mr. Musk can play with different parts of his business empire. In this case, he folded a company that has been losing value, X, into one that has been gaining value, xAI,” according to The New York Times.

Musk is most often referred to as the richest man in the world, but he also carries another designation – one of the most intelligent. While this is a bold business move, even his detractors must admit that Musk’s successes have far outnumbered his failures.

1. Elon Musk is most often referred to as the richest man in the world and one of the most intelligent.
2. Musk sold his social media platform X to his xAI platform, one of the leading artificial intelligence labs in the world, which is owned by him.
3. Since X has been losing money, it benefits from being owned by xAI.