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The potential funding round could make early financial backers whole after Musk purchased Twitter for $44 billion in 2022.
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Elon Musk’s X social media platform is reportedly in talks with investors to raise additional capital at a valuation of $44 billion — the same amount Musk acquired the company for in 2022 before rebranding it to X and taking it private.
According to Bloomberg, the capital raise would represent a “remarkable turnaround” for the social media platform and its early backers, which included venture capital firms Andreessen Horowitz, Sequoia Capital and the Qatari Investment Authority — Qatar’s sovereign wealth fund.
However, the outlet noted that the reported talks do not guarantee a funding deal will be finalized and said that the details surrounding the potential funding are subject to change.
The talks come amid growing rumors that the social media platform will soon launch its in-app payment service, having already acquired money transmitter licenses for 41 states in the United States and establishing a dedicated X account for payments called “X Money,” whose bio now states it is “launching in 2025.”
Source: X Money
Related: Elizabeth Warren calls Elon Musk ’bank robber’ for dismantling CFPB
A reversal of fortunes following the 2024 US presidential election
Following Musk’s takeover of Twitter, which was finalized in October 2022, advertising revenue on the platform declined sharply, raising concerns about the sustainability of the platform’s business model.
However, immediately following the reelection of Donald Trump as US president, Musk’s net worth surged by $20 billion due to a corresponding rise in the value of the companies he founded.
These included automotive manufacturer Tesla, which reached an all-time high of approximately $488 per share in December 2024, and xAI, which was valued at $50 billion in November 2024.
Tesla’s stock price hit an all-time high of approximately $488 per share on Dec. 18, 2024. Source: TradingView
According to Forbes’ billionaires list, Musk is currently the wealthiest person in the world, with a net worth of over $398 billion as of Feb. 19.
The tech entrepreneur’s net worth is over $156 billion more than Mark Zuckerberg, the world’s second-wealthiest individual at the time of writing.
Musk’s relationship with the current executive branch in the US has catapulted the billionaire into sociopolitical importance as he has taken an unofficial yet significant advisory role in the Trump administration.
Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
This article first appeared at Cointelegraph.com News
