Elon Musk, the billionaire, announced that his artificial intelligence startup xAI has purchased the social media platform X for a valuation of $33 billion, creating a surprise development in the industry. Musk revealed in a post that the combination of xAI and X is valued at $80 billion, with X being valued at $33 billion, including $12 billion in debt, in an all-stock deal. Musk emphasized that by merging xAI's advanced AI capabilities and expertise with X's large user base, they can unlock vast potential. Musk, who acquired Twitter for $44 billion in 2022, has made changes to the platform, including job cuts and feature updates. He has also used the platform to promote Grok, an AI chatbot developed by xAI, positioning xAI to compete with other AI firms like OpenAI. Analysts view the acquisition positively, with Shweta Khajuria noting that the deal benefits both of Musk's businesses. Musk had considered raising funds for xAI at a valuation of $75 billion and disclosed that xAI has quickly become a leading AI lab globally over the past two years. X, on the other hand, has transformed into an efficient company under Musk's leadership. X recently raised nearly $1 billion in equity financing, with projections showing increased advertising revenue growth under Musk's ownership. Emarketer estimates that X is set to generate $1.31 billion in US ad sales in 2025, a 17.5% increase from the previous year. Globally, X's ad sales are forecasted to reach $2.26 billion this year, up by 16.5%.