In a move that reshapes the social media landscape, Elon Musk has sold X (formerly Twitter) to his artificial intelligence company, xAI, in a deal valuing the platform at $45 billion—less than half of what he paid in 2022. The acquisition signals Musk’s aggressive push toward an AI-integrated future, but raises major questions about free speech, data privacy, and the platform’s identity.
Key Details of the Deal
xAI Takes Full Control – X will now operate as an xAI subsidiary.
Valuation Plummets – Down from Musk’s original $44 billion purchase price.
Massive Staff Cuts Expected – AI automation to replace “redundant” roles.
Why Musk Made This Move
1. AI-Powered Social Media
- Plans to rebuild X’s algorithm using xAI’s Grok technology.
- Chatbot moderation could replace human content reviewers.
2. Data Goldmine for AI Training
- xAI gains access to X’s real-time user data—fueling AI development.
3. Financial Pressure
- X’s ad revenue never recovered post-acquisition.
- Musk likely needed to cut losses while retaining strategic control.
Immediate Fallout
User Backlash – Fears over AI censorship and privacy violations.
Regulatory Scrutiny – FTC and EU already probing the deal.
Stock Market Reaction – Tesla shares dipped 3% on the news.
What’s Next for X?
- “AI Moderators” could replace human teams by 2026.
- Pay-to-Post Model? Musk previously hinted at subscription-only features.
- Deepfake Risks – AI integration may worsen misinformation.