Elon Musk announced that his artificial intelligence company, xAI, has acquired X (formerly Twitter) in an all-stock deal. The transaction values xAI at $80 billion and X at $33 billion, significantly less than the $44 billion Musk initially paid for Twitter in 2022.

Musk stated that integrating xAI and X will enhance AI-driven features on the platform by combining data, computing power, and talent. xAI’s chatbot, Grok, already operates within X, using platform data for AI training. Analysts believe this move aligns with the growing trend of AI and data center investments.

The acquisition comes as Musk continues his legal battle with OpenAI, the company he co-founded in 2015. He previously sued OpenAI and CEO Sam Altman, accusing them of deviating from their original mission. Meanwhile, OpenAI is reportedly securing a $40 billion investment from SoftBank.

Musk has also made a $97.4 billion bid to acquire OpenAI, which Altman rejected. As Musk expands his AI ambitions, he has become increasingly involved in politics, aligning himself with President Trump and funding political campaigns. Wisconsin’s attorney general has challenged Musk’s financial contributions in a state election.