In a post on X, Musk stated, "The futures of xAI and X are interconnected. Today, we officially take the step to merge our data, models,

Musk says this move is ‘blending xAI’s advanced AI capability and expertise with X’s massive reach.‘

Musk, the owner of both companies, said the deal values the startup AI company at $80 billion and the social media platform at $33 billion.

The all-stock deal combines two of Mr Musk's multiple portfolio companies and potentially eases Musk's ability to train his AI model known as Grok.