Elon Musk has sold X, but there’s a catch

In a surprise announcement, Elon Musk revealed he has sold social media platform X to his own AI company, xAI, in an all-stock deal valued at $33 billion. While the move may appear to be a transfer of ownership, the reality suggests something more strategic than it seems.

A reshuffle, not a real sale

The deal, which keeps both companies under Musk’s control, is being marketed as a way to merge xAI’s advanced technology with X’s enormous user base. Musk emphasized that this integration will “unlock immense potential,” allowing the platforms to share data, computing power, models, and talent. The billionaire said this would lead to “smarter, more meaningful experiences” while staying committed to the mission of advancing truth and knowledge.

From Twitter to X to xAI

Musk originally purchased Twitter for $44 billion in 2022, dismantling its team and reshaping its policies under the new name X. Just a year later, he launched xAI, aiming to compete with other major players in the AI space. Now, by combining the two, Musk positions xAI as a key force in AI development while using X as a massive training groundfor data and user interaction.

What changes for users?

In practice, not much—xAI was already training its models on public X data, and premium X users had early access to Grok, the company’s AI chatbot. With the sale, this synergy is now official, but users may not see immediate changes in how the platform works.

Ultimately, this appears less like a sale and more like Musk rearranging his empire, consolidating power while keeping full control.