Elon Musk
Musk says xAI has acquired X in $33 billion stock deal
The acquisition comes two and a half years after Musk first acquired X, formerly known as Twitter.
Elon Musk announced this week that xAI has acquired his social media platform X, performed through an all-stock transaction expected to make it easier to raise additional funding for the combined entities.
In a post on X on Friday, Musk said that xAI acquired X in an all-stock transaction, with xAI valued at $80 billion and X at $33 billion, considering a $45 billion value less $12 billion in debt for the social media company. He adds that combining the companies “will deliver smarter, more meaningful experiences,” along with offering a “platform that doesn’t just reflect the world but actively accelerates human progress.”
A report from the Wall Street Journal said that shares of X and xAI would be exchanged for shares in a holding company dubbed the xAI Holdings Corp., while the report also claimed that executives at both firms believed merging would make it easier to raise funding.
You can read Musk’s full statement on the acquisition below.
xAI has acquired X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale.
X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth.
xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.
I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning.
Thank you for your continued partnership and support.
READ MORE ON XAI: Elon Musk’s xAI gets investment from Nvidia in recent funding round: report
Musk officially purchased X, then called Twitter, and took it private for $44 billion in October 2022. The Tesla CEO then launched xAI in 2023, along with debuting the company’s first product, Grok, first as a large language AI model that was only available on X. The model has since been developed more and has added image generation, and the company last month debuted the latest-gen Grok 3 update.
Last month, it was also reported that xAI’s upcoming $700 million data center in Atlanta would be operated collaboratively with X, which is expected to eventually utilize over 12,000 Nvidia GPUs. The AI firm also activated an even larger data center in Memphis, Tennessee last year, dubbed Colossus, and expected to sport 200,000 Nvidia GPUs upon completion.
Elon Musk
Elon Musk’s xAI bets $20B on Mississippi with 2GW AI data center project
The project is expected to create hundreds of permanent jobs, dramatically expand xAI’s computing capacity, and further cement the Mid-South as a growing hub for AI infrastructure.
Elon Musk’s xAI plans to pour more than $20 billion into a massive new data center campus in Southaven, Mississippi, marking the largest single economic development project in the state’s history.
The project is expected to create hundreds of permanent jobs, dramatically expand xAI’s computing capacity, and further cement the Mid-South as a growing hub for AI infrastructure.
xAI goes MACROHARDRR in Mississippi
xAI has acquired and is retrofitting an existing facility in Southaven to serve as a new data center, which will be known as “MACROHARDRR.” The site sits near a recently acquired power plant and close to one of xAI’s existing data centers in Tennessee, creating a regional cluster designed to support large-scale AI training and inference.
Once completed, the Southaven facility is expected to push the company’s total computing capacity to nearly 2 GW, placing it among the most powerful AI compute installations globally. The data center is scheduled to begin operations in February 2026.
Gov. Tate Reeves shared his optimism about the project in a press release. “This record-shattering $20 billion investment is an amazing start to what is sure to be another incredible year for economic development in Mississippi. Today, Elon Musk is bringing xAI to DeSoto County, a project that will transform the region and bring amazing opportunities to its residents for generations. This is the largest economic development project in Mississippi’s history,” he said.
xAI’s broader AI ambitions
To secure the investment, the Mississippi Development Authority approved xAI for its Data Center Incentive program, which provides sales and use tax exemptions on eligible computing hardware and software. The City of Southaven and DeSoto County are also supporting the project through fee-in-lieu agreements aimed at accelerating development timelines and reducing upfront costs.
Founded in 2023 by Elon Musk, xAI develops advanced artificial intelligence systems focused on large-scale reasoning and generative applications. Its flagship product, Grok, is integrated with the social media platform X, alongside a growing suite of APIs for image generation, voice, and autonomous agents, including offerings tailored for government use.
Elon Musk highlighted xAi’s growth and momentum in a comment about the matter. “xAI is scaling at an immeasurable pace — we are building our third massive data center in the greater Memphis area. MACROHARDRR pushes our Colossus training compute to ~2GW – by far the most powerful AI system on Earth. This is insane execution speed by xAI and the state of Mississippi. We are grateful to Governor Reeves for his support of building xAI at warp speed,” Musk said.
Tesla’s Head of AI, Ashok Elluswamy, says that something that was expected with version 14.3 of the company’s Full Self-Driving platform has already partially shipped with the current build of version 14.2.
Tesla and CEO Elon Musk have teased on several occasions that reasoning will be a big piece of future Full Self-Driving builds, helping bring forth the “sentient” narrative that the company has pushed for these more advanced FSD versions.
Back in October on the Q3 Earnings Call, Musk said:
“With reasoning, it’s literally going to think about which parking spot to pick. It’ll drop you off at the entrance of the store, then go find a parking spot. It’s going to spot empty spots much better than a human. It’s going to use reasoning to solve things.”
Musk said in the same month:
“By v14.3, your car will feel like it is sentient.”
Amazingly, Tesla Full Self-Driving v14.2.2.2, which is the most recent iteration released, is very close to this sentient feeling. However, there are more things that need to be improved, and logic appears to be in the future plans to help with decision-making in general, alongside other refinements and features.
On Thursday evening, Elluswamy revealed that some of the reasoning features have already been rolled out, confirming that it has been added to navigation route changes during construction, as well as with parking options.
He added that “more and more reasoning will ship in Q1.”
🚨 Tesla’s Ashok Elluswamy reveals Nav decisions when encountering construction and parking options contain “some elements of reasoning”
More uses of reasoning will be shipped later this quarter, a big tidbit of info as we wait v14.3 https://t.co/jty8llgsKM
— TESLARATI (@Teslarati) January 9, 2026
Interestingly, parking improvements were hinted at being added in the initial rollout of v14.2 several months ago. These had not rolled out to vehicles quite yet, as they were listed under the future improvements portion of the release notes, but it appears things have already started to make their way to cars in a limited fashion.
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
As reasoning is more involved in more of the Full Self-Driving suite, it is likely we will see cars make better decisions in terms of routing and navigation, which is a big complaint of many owners (including me).
Additionally, the operation as a whole should be smoother and more comfortable to owners, which is hard to believe considering how good it is already. Nevertheless, there are absolutely improvements that need to be made before Tesla can introduce completely unsupervised FSD.
Elon Musk
Tesla’s Elon Musk: 10 billion miles needed for safe Unsupervised FSD
As per the CEO, roughly 10 billion miles of training data are required due to reality’s “super long tail of complexity.”
Tesla CEO Elon Musk has provided an updated estimate for the training data needed to achieve truly safe unsupervised Full Self-Driving (FSD).
As per the CEO, roughly 10 billion miles of training data are required due to reality’s “super long tail of complexity.”
10 billion miles of training data
Musk comment came as a reply to Apple and Rivian alum Paul Beisel, who posted an analysis on X about the gap between tech demonstrations and real-world products. In his post, Beisel highlighted Tesla’s data-driven lead in autonomy, and he also argued that it would not be easy for rivals to become a legitimate competitor to FSD quickly.
“The notion that someone can ‘catch up’ to this problem primarily through simulation and limited on-road exposure strikes me as deeply naive. This is not a demo problem. It is a scale, data, and iteration problem— and Tesla is already far, far down that road while others are just getting started,” Beisel wrote.
Musk responded to Beisel’s post, stating that “Roughly 10 billion miles of training data is needed to achieve safe unsupervised self-driving. Reality has a super long tail of complexity.” This is quite interesting considering that in his Master Plan Part Deux, Elon Musk estimated that worldwide regulatory approval for autonomous driving would require around 6 billion miles.
FSD’s total training miles
As 2025 came to a close, Tesla community members observed that FSD was already nearing 7 billion miles driven, with over 2.5 billion miles being from inner city roads. The 7-billion-mile mark was passed just a few days later. This suggests that Tesla is likely the company today with the most training data for its autonomous driving program.
The difficulties of achieving autonomy were referenced by Elon Musk recently, when he commented on Nvidia’s Alpamayo program. As per Musk, “they will find that it’s easy to get to 99% and then super hard to solve the long tail of the distribution.” These sentiments were echoed by Tesla VP for AI software Ashok Elluswamy, who also noted on X that “the long tail is sooo long, that most people can’t grasp it.”
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