What’s going on here? With the sale of X to xAI, Musk is exchanging the investor base of the social network with that of his AI company.

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.

If you’re Elon Musk, you sell X to xAI. He did OK on the sale. In a Friday evening tweet on X, Elon Musk wrote that xAI had acquired X for $33 billion, or “$45 B less $12B debt.” In his tweet, Musk explained the rationale behind the deal.

Elon Musk's AI startup, xAI, has acquired his social media platform X, formerly known as Twitter, in an all-stock deal.

The companies are being combined in an all-stock deal that values xAI at $80 billion and X at $33 billion, factoring in the social network's $12 billion debt.

Musk used his artificial intelligence startup, xAI, to purchase his social media platform in an all-stock deal that values X at $33 billion, not including debt

The acquisition was an all-stock transaction for $45 billion with the combined company now valued at $80 billion, according to Elon Musk.

Elon Musk said X and xAI combined aim to offer smarter experiences while advancing truth, knowledge, and human progress.