Musk’s XAI Deal Offers an Unexpected Win for X Investors

Elon Muskjust acquired the social network formerly known as Twitter for the second time in three years.

Musk, the world’s richest person, on March 28 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 new joint entity, which will be called XAI Holdings, has a value of more than $100 billion, again excluding debt, Bloomberg News reported.

The deal was a surprise, but not necessarily shocking: The two businesses have worked together closely since xAI’s founding in 2023, including on data ...