Elon Musk revealed on Friday that his artificial intelligence company, xAI, will acquire X, the social media platform he also owns, in an all-stock transaction worth $33 billion.

This deal will value xAI at $80 billion, positioning it as the second-most valuable AI company, just behind OpenAI, which is nearing a $40 billion investment from SoftBank.

“This merger will combine xAI’s cutting-edge AI technology with X’s vast global reach,” Musk said on X. “Together, we will create smarter, more impactful experiences for billions of people, all while staying true to our mission of seeking truth and advancing knowledge. This will enable us to build a platform that not only reflects the world but actively drives human progress.”

Musk acquired Twitter, now X, in 2022 for $44 billion, taking it private through a consortium he led.

In other AI news, last month, Anthropic raised $3.5 billion in funding, bringing its valuation to $61.5 billion, making it the second-largest AI company. xAI had previously been valued at $50 billion following its $6 billion Series C funding round in November, with Lightspeed Venture Partners also involved.

xAI recently launched Grok-3, its latest chatbot, aiming to compete with OpenAI and Chinese AI company DeepSeek.