Bought For $44 Billion Sold For $33 Billion: Did Elon Musk Lose Money In X?

Elon Musk has sold social media site X (previously Twitter) to his own xAI artificial intelligence firm for $33 billion in an all-stock deal. Musk said in a social media post that the move will unlock “immense potential” by blending xAI’s advanced AI capability and expertise with X’s massive global reach. 

Musk, who serves as CEO of Tesla and SpaceX as well as an advisor to President Donald Trump , also stated that the deal values xAI at 80 billion US dollars and X at 33 billion US dollar. Since both the companies are privately held, other financial details were not disclosed.

It may be recalled that Musk bought X for $ 44 billion in 2022. He launched xAI a year later.

Did Musk loose in Money? 

The company's value has dropped since Musk took over. So, on paper, it appears to be not a profitable sale. But in in reality, it is not the case. The primary reason is Elon Musk has sold X to his entity. Musk’s net worth fluctuates heavily due to Tesla, SpaceX, and other holdings, so this loss may not be gigantic. 

However, Musk is confident that if he successfully monetizes X in new ways, he could recover or even profit in the future. Furthermore, Musk’s long-term goal seems to be transforming X into an "everything app" like WeChat. If successful, he could regain or exceed his initial investment.

Break Even in Near Future?

Whatever the loss Musk's company has incurred in this deal will break even soon, if industry sources to believed, as the xAI is going full throttle investing in research and development betting on paid AI tools.