Elon Musk claims a combined valuation of $113 billion after merging his AI startup xAI with X.

Musk, also the CEO of Tesla and SpaceX, acquired Twitter for $44 billion in late 2022, later renaming it X after implementing aggressive cost-cutting measures. Following Friday’s announcement, X CEO Linda Yaccarino posted, “The future could not be brighter.”

Musk launched xAI less than two years ago with the goal of “understanding the true nature of the universe.” The startup has been a direct competitor to OpenAI, the AI company Musk co-founded in 2015 as a nonprofit research lab before later parting ways. Recently, Musk has been embroiled in legal and public disputes with OpenAI and its CEO, Sam Altman, over the company’s direction.

xAI has been developing large language models and AI software, competing with OpenAI, Google, Microsoft, Meta, and others. Its chatbot, Grok, is already integrated into X. In June, xAI announced plans to build a supercomputer in Memphis, Tennessee, to train Grok, and by September, part of the system—now called Colossus—was online.

However, xAI’s rapid expansion in Memphis has sparked concerns among environmental and public health advocates, citing a lack of community involvement and oversight. Colossus is powered by natural gas turbines, and xAI plans to construct a graywater facility nearby.

Last year, xAI was valued at around $50 billion in a financing round. Bloomberg recently reported that the company was in talks to raise funds at a $75 billion valuation. In comparison, OpenAI was nearing a $260 billion valuation in February, while Anthropic was valued at $61.5 billion in a deal closed this month.

In addition to his commercial endeavors, Musk has played a significant role in Washington, D.C., during the second term of President Donald Trump. Musk was appointed to head the Department of Government Efficiency (DOGE) after giving close to $300 million to Trump’s 2024 campaign and other Republican causes. His duties included slashing government employment, cutting spending, and getting rid of regulations—changes that could help his various businesses.

Musk has been involved in significant mergers before. For $2.6 billion, Tesla purchased SolarCity, a solar panel installation company started by Lyndon and Peter Rive, Musk’s cousins, in 2016. A Delaware judge decided in favor of Musk, allowing the acquisition to proceed without financial penalties, despite Tesla shareholders’ subsequent lawsuits alleging the deal was a bailout that benefited Musk personally.