Elon Musk’s artificial intelligence firm, xAI, has acquired the social media platform X, formerly known as Twitter, which Musk already owned. The transaction was finalized as an all-stock deal valued at $33 billion, allowing for the integration of xAI’s advanced technology with X’s extensive reach. Musk announced the transfer of ownership on X, emphasizing the goal of creating “smarter experiences” through this merger.

The acquisition has increased xAI’s total valuation to $45 billion. Musk originally purchased Twitter in 2022 for $44 billion before rebranding it to X. With the acquisition, the combined value of xAI stands at $80 billion while accounting for X’s $12 billion debt.

In his announcement, Musk pointed out that both companies share a closely linked future, and since they remain private, they are not required to disclose specific financial information to the public. Musk has expressed plans for xAI and X to collaborate by merging their data, models, computational resources, distribution, and talent. This partnership aims to utilize X’s vast user base as a social platform while enhancing xAI’s capabilities.

Notably, xAI’s AI chatbot Grok has already been significantly integrated into X’s functionalities. The merger comes at a time of increasing competition in the AI industry. Musk aims to establish xAI as a prominent player in “truth-seeking” artificial intelligence.

With a valuation of $80 billion, xAI seeks to compete with OpenAI, which has an estimated valuation of $157 billion. Musk markets Grok as a response to what he refers to as “woke AI.” In the coming months, X users can anticipate new AI-driven features stemming from this acquisition, including personalized feeds, AI-generated content suggestions, and enhanced moderation tools.

However, specific updates have yet to be announced, leaving users eager for what the future holds.