Elon Musk’s xAI has successfully acquired his social media platform, X, in an acquisition valued at $45 billion, settling in an all-stock deal amidst rising company valuations following recent political events.

Prior to this acquisition, Musk transformed Twitter into X for $44 billion back in 2022. However, the value of X saw a drastic reduction, appraised at 72% lower than Musk’s original purchase price by Fidelity.

Despite the acquisition, internal struggles remain, with ad revenues reported significantly under target. As noted by the New York Times, X’s ad revenue in the current year stands at $91 million, falling short of the $153 million goal for the first quarter.

Musk has placed a $80 billion valuation on xAI, which has already gained significant investments, including $6 billion in funding last December. Musk firmly supports integrating X’s user-generated data, stating:

“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.”

The merger is expected to significantly impact both companies as they try to leverage their unique capabilities amidst evolving market demands.