Elon Musk’s X, formerly known as Twitter, is on the brink of a major breakthrough as reports suggest that the company is in talks to raise funds from investors at a valuation of $44 billion. This development comes as a surprise considering Musk’s initial investment of $44 billion to acquire the platform in 2022, which was widely criticized at the time for being overpriced.
According to Bloomberg News, discussions for the funding round are still ongoing, and details could change in the coming days. If the deal goes through, it would mark the first investment round for X since Musk took over the company. The $44 billion valuation represents a significant turnaround for X, especially after the company saw a decline in valuation following Musk’s acquisition. In December, Fidelity Investments reduced its stake in Twitter by about 70% from the initial sale price, but this estimate was made before the recent funding talks.
Morgan Stanley is reportedly finalizing the sale of $3 billion worth of X debt at face value due to high demand from investors. X has not commented on the matter yet, but the potential funding round could be a game-changer for the company.
One key factor contributing to X’s improved valuation is its stake in Elon Musk’s artificial intelligence startup, xAI. With a stake of approximately $6 billion in xAI, X stands to benefit from the success of the AI company, which is currently in talks to raise funds at a valuation of $75 billion. xAI has been making waves in the AI industry, recently launching its latest large language model, Grok-3.
Overall, the future looks bright for X as it navigates its way towards financial stability and growth. The company’s strategic investments and partnerships are paying off, and with the backing of high-profile investors, X is well-positioned to capitalize on the booming tech industry. Stay tuned for more updates on X’s fundraising efforts and its continued success in the market.