Elon Musk’s social media platform, X, is reportedly in talks to raise new funding at a valuation of $44 billion—the same amount Musk paid when he acquired the company, formerly known as Twitter, in October 2022.
According to Bloomberg on 19 February, sources familiar with the matter say these discussions mark a potential turning point for X, which has faced challenges and fluctuating valuations since Musk’s takeover. If successful, this would be X’s first known funding round since becoming a private company. However, talks are still ongoing, and the plan could change.
Following Musk’s acquisition, X’s value dropped sharply, with Fidelity Investments cutting its stake in the company by 70% in December 2024, valuing it at just $12.3 billion. This was largely due to advertisers pulling out and operational instability. However, investor interest now appears to be picking up, and X is looking to regain its original price tag.
The fresh capital is expected to support X’s ambitious expansion plans, including improvements to its payment system, X Money, and the development of new video content. The funds could also help reduce the company’s heavy debt burden, a result of the $13 billion in loans used to finance Musk’s buyout.
X’s prospects seem to be improving, thanks to a rebound in advertising revenue and Musk’s increasing influence in Trump’s administration. Major advertisers such as Amazon and Apple have reportedly returned to the platform.
Additionally, X owns a $6 billion stake in Musk’s AI company, xAI, which is seeking $10 billion in funding at a valuation of $75 billion. If xAI secures this investment, it could further strengthen X’s appeal to investors.
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