Elon Musk announced Friday that his company xAI is buying X, the social media platform formerly known as Twitter, in an all-stock deal. The transaction values xAI at $80 billion and X at $33 billion, according to CNBC.

Social platform X struggled after Elon Musk took over, but its fortunes improved dramatically after US President Donald Trump won reelection. Now it will be become part of Musk's AI startup xAI.

Elon Musk's AI startup, xAI, has acquired his social media platform X, formerly known as Twitter, he announced in a post on X Friday. "xAI has acquired X

What’s going on here? With the sale of X to xAI, Musk is exchanging the investor base of the social network with that of his AI company.

The companies are being combined in an all-stock deal that values xAI at $80 billion and X at $33 billion, factoring in the social network's $12 billion debt.

Some Democrats on Capitol Hill have invested in Tesla in recent weeks, even amid the anti-Musk furor.

Elon Musk's artificial intelligence firm xAI acquired X in an all-stock deal valuing the social media company at $45 billion, minus $12 billion in debt.

Musk said in a post on X that the move will “unlock immense potential by blending xAI's advanced AI capability and expertise with X's massive reach.”

Elon Musk's AI company, xAI, has purchased X, according to a post shared by Musk. Besides their similar names and owner, the companies are already connected through xAI's chatbot Grok, which is integrated into X.