Musk pulls off deal by selling social network X to his own startup for USD 33 billion

American billionaire Elon Musk, who currently heads the US Department of Government Efficiency (DOGE), announced that he had sold his social media company X to his artificial intelligence startup xAI.

The portal of the American broadcaster CNN has reported this.

According to the deal, the social network X is valued at USD 33 billion, which is much less than what he paid for it in 2022.

"xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach," Musk noted in a post on X.

Musk did not write about any immediate changes to X, although xAI's Grok chatbot is already integrated into the platform. The combined platform, he said, will “deliver smarter, more meaningful experiences.”

After he acquired the social network in 2022, Musk made a series of changes to the platform, once known as Twitter, that forced some big advertisers to leave. He also laid off 80% of the company’s staff, changed the platform’s review system and carried out other reorganizations.