Elon Musk announced that his artificial intelligence company, xAI, has officially taken over his social media platform, X. He shared the news on Friday, confirming that the companies completed the deal through an all-stock transaction.

Musk revealed that the agreement values xAI at $80 billion and X at $33 billion. The billionaire originally acquired Twitter, now called X, in 2022 for $44 billion.

The merger means xAI and X will now function as a single unit, combining resources, systems, and expertise. Musk stated that this move will speed up artificial intelligence (AI) development and improve the platform’s features.

xAI and X Join Forces to Boost AI Integration

The new structure will allow xAI to integrate its AI tools directly into X. This includes Grok, an AI chatbot developed by xAI that uses data from X to enhance user interactions. Grok already plays a key role in the platform, helping users get real-time responses and generate content.

Musk believes this merger will make X smarter and more interactive. He emphasized that both companies will now share technology, computing power, and data sources.

Observers say that this move also protects X investors from financial risks. Since both companies are privately owned, their operations can be closely linked without outside interference.

Tech analyst Paolo Pescatore supported the merger, stating that the AI industry is rapidly evolving. Many companies, including Google, Microsoft, and OpenAI, are increasing their investments in AI and data centers. By combining xAI and X, Musk is positioning himself as a major player in this race.

Musk’s Legal Battle with OpenAI

While expanding xAI’s role, Musk is also fighting a legal battle against OpenAI. He co-founded OpenAI in 2015, but he later left the company. He now accuses OpenAI and its CEO, Sam Altman, of betraying their original mission.

Musk claims that OpenAI was meant to be a non-profit focused on developing AI for the public good. However, the company later transitioned into a for-profit business, securing major investments from Microsoft. Musk argues that this shift prioritizes profits over ethical AI development.

In 2023, he sued OpenAI, stating that the company no longer aligns with its original purpose. OpenAI has denied these claims, saying that its work continues to benefit users worldwide.

Recent reports suggest that SoftBank is in talks to invest $40 billion in OpenAI. If the deal happens, OpenAI will likely move further into commercial AI development. Critics believe Musk’s lawsuit may be an attempt to regain control over the company rather than protect its mission.

Earlier this year, Musk made an unsuccessful attempt to buy OpenAI for $97.4 billion. Altman rejected the offer, insisting that OpenAI remains independent.

Musk’s Growing Influence in Politics

Musk is not just shaping the tech industry—he is also increasing his political influence. He has become a key advisor to former President Donald Trump, working on economic and government policies.

One of his main goals is to reduce federal spending and push for conservative reforms. His involvement in politics has grown, with many seeing him as a major figure in shaping national policies.

This weekend, Musk visited Wisconsin, where he contributed millions to a crucial Supreme Court election. His donations sparked controversy, as some believe they could sway the outcome.

On Friday, the state’s attorney general took legal action, asking a court to block Musk’s $1 million voter giveaways. Officials argue that these payments may unfairly influence voters just before the election.

The Future of xAI and X

Musk’s latest move cements his vision of combining AI with social media. By merging xAI and X, he aims to create a smarter, AI-powered platform that can compete with major tech giants.

The integration of Grok and other AI tools could change how users interact on X. If successful, this could set a new standard for social media, where AI plays a bigger role in content creation and engagement.

At the same time, Musk’s legal battle with OpenAI and his political involvement are drawing attention. His influence extends beyond tech, making him one of the most powerful figures in both AI and politics.

As AI continues to evolve, Musk’s decisions will shape the future of the industry. His ability to merge technology, business, and politics puts him at the center of many key developments.