Elon Musk announced on Friday evening that he has sold his social media platform, X, to his artificial intelligence company, xAI. The deal, valued at $45 billion, is slightly higher than what Musk originally paid for X in 2022. However, the transaction also includes $12 billion in debt, giving X a valuation of $33 billion.

Musk shared the news on his X account, stating that the merger of xAI and X would blend data, models, computing power, distribution, and talent from both companies. He expressed optimism about the partnership, saying it would "unlock immense potential" by combining xAI's advanced AI capabilities with X's massive user base.

Although Musk has not announced immediate changes to X, he hinted at more integrated and intelligent experiences on the platform. xAI’s Grok chatbot, already embedded within X, is expected to play a central role in this transformation. Musk also revealed that the combined company’s value now stands at $80 billion.

Musk acquired X, formerly Twitter, in 2022 and implemented significant changes, including massive staff cuts and revamping the platform’s verification system. These moves, along with reinstating suspended accounts, led to a loss of major advertisers. Despite the challenges, X’s current valuation marks a turnaround, as investment firm Fidelity had estimated a dramatic drop in value earlier.

The sale also aligns with Musk’s broader ambition to establish himself as a leader in the AI space. He has been actively involved in AI-related ventures, including an attempt to purchase OpenAI, the maker of ChatGPT, for nearly $100 billion.

Amid Musk’s role in the Trump administration’s Department of Government Efficiency, questions have arisen about his focus on his various business ventures. However, merging X and xAI may streamline his efforts, leveraging X’s reach to accelerate AI innovation.