Today, Elon Musk announced that xAI acquired X in an all-stock deal, valuing X at $33 billion (or $45 billion including $12 billion in debt) and xAI at $80 billion. This merger intertwines their futures, blending X’s vast data, reach, and distribution with xAI’s AI expertise.

Now, let’s break down the math for the original X investors. Musk bought Twitter in 2022 for $44 billion. Reports from late 2024 indicated that X investors were granted a 25% stake in xAI, which, at the time, was valued at $50 billion in a fundraising round—implying a $12.5 billion stake for X investors. Fast forward to this acquisition: xAI’s valuation has risen to $80 billion, making that 25% stake worth $20 billion today.

Source: IA