New York — When Elon Musk acquired Twitter in October 2022 for a staggering $44 billion, the consensus among financial analysts and industry experts was nearly unanimous—he had dramatically overpaid. The social media giant, already struggling with stagnant user growth and an uncertain advertising model, was thrust into turmoil almost immediately after Musk’s takeover. His radical restructuring efforts, which included sweeping layoffs, a complete overhaul of the verification system, and controversial policy changes, sent shockwaves through the company’s operations and alienated many of its core advertisers. In the months that followed, X—formerly Twitter—saw its valuation plummet as major brands distanced themselves from the platform, wary of the unpredictable leadership and a rise in objectionable content that made their ad placements appear risky.
Two and a half years later, against all odds, Musk appears to be reversing the narrative. Reports from Bloomberg indicate that X is in talks to raise new capital at a valuation that once again places the company at the same $44 billion price tag that Musk originally paid. While these discussions remain preliminary and are subject to change, the potential return to its initial valuation marks an extraordinary shift for a company that not long ago was teetering on the brink of financial collapse.
Much of X’s resurgence can be attributed to the gradual return of major advertisers. The exodus that followed Musk’s early tenure, driven in large part by concerns over hate speech and controversial content moderation policies, appears to be slowing. Amazon and Apple—two of the world’s largest and most influential brands—are reportedly reinvesting in X’s ad campaigns, signaling renewed confidence in the platform. Their return comes after Musk took steps to address advertiser concerns, including removing pro-Nazi accounts from the platform’s ad eligibility and refining the approach to content moderation. The ability to win back such high-profile advertisers has bolstered optimism about X’s financial stability and long-term viability.
Another factor contributing to X’s improved outlook is its connection to Musk’s artificial intelligence company, xAI. X reportedly holds a stake in xAI, which is in the midst of a funding round that could value it at $75 billion. The potential financial windfall from Musk’s expanding AI ventures has sparked speculation that X could benefit significantly, either through direct monetization opportunities or by attracting investors who see value in its ties to Musk’s broader technological empire.
Yet, perhaps the most defining element of X’s remarkable turnaround is Musk himself. His ability to defy conventional wisdom, disrupt traditional business models, and leverage his influence in multiple industries has made X’s valuation as much a reflection of his personal brand as it is of the company’s actual financial performance. Investors betting on X are, in many ways, placing their faith in Musk’s vision and leadership rather than the fundamental strength of the platform itself.
Musk’s growing influence in government has also played a crucial role in X’s renewed relevance. His appointment as a special government employee under the Trump administration has positioned him at the center of key policy discussions, further elevating X as a crucial tool for political discourse. Under Musk’s leadership, X has become a pro-Trump powerhouse, amplifying narratives that resonate with the administration’s supporters and solidifying its place as the go-to platform for political engagement in the current era.
Despite facing intense scrutiny for his handling of content moderation and advertiser relations, Musk’s unwavering confidence in his approach has reshaped X into an entity unlike any other social media platform. His aggressive cost-cutting measures, which included reducing the company’s workforce by nearly 80%, have improved margins and helped stabilize the company’s financial standing. The question remains whether these changes will be enough to sustain X’s newfound momentum in the face of ongoing competition from rival platforms.
