“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,” Musk wrote on X. “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.”

XAI is now valued at $80 billion.

Both companies are headquartered in the San Francisco Bay area.

Musk founded XAI in March 2023 to use artificial intelligence to understand and generate human-like text. At the time he said the company will seek to “understand reality,” according to the post on Twitter.

X has around 1,500 employees, much lower than around 7,500 before Musk’s acquisition. XAI had around 1,000 workers and products include Grok, Aurora and PromptlDE.

In February, investors led by Musk have offered $97.4 billion to take over OpenAI, the artificial intelligence maker of ChatGPT.

“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens,” Musk said in a statement.

In response, Open AI chief executive Sam Altman posted on Musk’s social media platform X: “No thank you but we will buy twitter for $9.74 billion if you want.”

In 2015, Musk and Altman co-founded the startup OpenAI as a nonprofit company, but the relationship has chilled since Musk departed the firm in 2018. The ChatGPT tool debuted in November 2022.

Musk, who is worth $347.7 billion, according to Forbes, is the largest shareholder of Tesla, the electric vehicle company and is CEO of SpaceX.

In addition, he has been running the Department of Government Efficiency, which is tasked with cutting billions of dollars, including slashing workforces.