Elon Musk’s social media platform X (formerly Twitter) has successfully raised nearly $1 billion in fresh equity financing, according to sources familiar with the deal. The fundraising effort values the company at approximately $32 billion, matching the valuation Musk set when he took the platform private in October 2022.
Musk’s Personal Investment
Elon Musk himself reportedly participated in this latest equity raise, reinforcing his long-term commitment to the platform he acquired for $44 billion. Musk has often stated his intention to turn X into a “super app,” integrating social networking with payments, shopping, and artificial intelligence (AI).
Where the Money’s Going
Sources indicate a portion of the new capital will be used to pay down X’s outstanding debt. Since Musk’s takeover, the company has been carrying a debt load of about $13 billion, tied to the leveraged buyout. Servicing that debt has reportedly strained X’s finances, with interest payments alone costing the company over $1 billion annually.
This equity injection may ease those pressures and help improve the company’s financial flexibility, insiders suggest.
What’s Behind the Raise?
The funding comes as Musk is working to reshape X’s business model. Since the takeover, he’s overhauled the platform’s verification system, introduced subscription-based services (like X Premium), and pursued AI-driven features. Musk also has ambitions for X to become a key player in the payments and financial services sector, directly competing with platforms like WeChat in China.
Investor Confidence
Despite a sometimes rocky path—including controversies over moderation, revenue declines, and significant staff cuts—investors appear willing to bet on Musk’s vision. X’s valuation holding steady at $32 billion signals continued faith in Musk’s ability to transform the platform and scale new revenue streams.
What’s Next for X?
Musk has promised big plans for X, including integrating AI chatbots, peer-to-peer payments, and even banking services. He has hinted at further expansion into video content, with monetization opportunities for creators, and a continued push toward making X a central hub for news, commerce, and communication.
Debt Burden Still a Concern
Even with this new equity round, X faces a high-risk environment, balancing its debt obligations against uncertain revenue growth. Advertising—once Twitter’s primary income source—has declined since Musk’s acquisition, though Musk claims ad revenue is stabilizing.
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