Elon Musk’s X has raised nearly $1 billion in fresh equity funding, boosting its valuation to $32 billion. This marks a financial rebound for the platform, though it still sits below Musk’s original $44 billion acquisition price from 2022.
The new X funding round comes as the company reports around $1.4 billion in adjusted profits for 2024 — a sign of growing financial strength after months of uncertainty. While these profits paint a positive picture, analysts note that the numbers exclude costs tied to layoffs and investments like Musk’s xAI venture while counting earnings from related businesses.
Even so, the equity raise, backed by investors like Darsana Capital Partners and 1789 Capital (also investors in SpaceX and xAI), signals a renewed belief in X’s potential — especially as the platform pushes forward with ambitious plans to transform into an “everything app.”
What’s striking about this new funding is the improved outlook on X’s debt. Earlier in 2025, major banks led by Morgan Stanley began selling X’s debt at 90–95 cents on the dollar, a massive shift from late 2023 when investors deemed the debt nearly worthless.
With $12.5 billion in debt still on the books, X’s total enterprise value now matches Musk’s original buyout price, suggesting a financial reset for the platform. The timing also aligns with Musk’s wider capital-raising efforts — SpaceX is now valued at $350 billion, and xAI is reportedly targeting a $75 billion valuation, up from $18 billion just months ago.
The X funding round creates leverage across Musk’s ventures while allowing X to operate independently — a smart play that positions the platform for its next phase of growth.
As part of this evolution, X is investing heavily in AI and content generation. Earlier this week, Musk’s xAI acquired Hotshot, an AI video generation startup. The deal strengthens X’s ability to compete with platforms like OpenAI’s Sora and Google’s Veo 2, both racing to dominate AI-powered video content.
This acquisition hints at deeper AI integration across X — from enhanced video tools to expanding Grok’s AI-powered news summaries — all part of Musk’s strategy to reshape the platform into a more dynamic content ecosystem.
The most transformative piece of X’s roadmap is the upcoming launch of X Money, a peer-to-peer digital wallet service set to debut in Q2 2025. The move revives Musk’s decades-old dream of building a global financial platform, reminiscent of his original X.com venture in 1999, which later evolved into PayPal.
In partnership with Visa, X Money will roll out with debit card links, instant bank transfers, and support for both fiat and cryptocurrency transactions. Creators will also be able to store earnings directly in X Wallets, offering new monetization paths.
The phased U.S. rollout will start with creator payouts and peer-to-peer transfers, eventually expanding globally as X navigates regulatory hurdles. According to X CEO Linda Yaccarino, this move represents “a critical step toward making X the ultimate ‘everything app.’”
As X prepares for the X Money rollout, the platform is also expanding its AI capabilities by integrating Hotshot’s technology and boosting Grok’s role in content curation. The end goal? A platform that’s part social network, part financial hub, and fully integrated with cutting-edge AI.
While X has made undeniable progress — raising $1 billion, stabilizing its debt, and mapping out bold new features — challenges remain. User growth, advertiser trust, and regulatory barriers will test the platform’s ability to fully execute its “everything app” vision.
Still, this latest X funding round proves one thing: investors are betting big on Musk’s ability to reinvent the platform and create new value, blending AI, social media, and finance in ways that few have dared to try.
