Elon Musk’s Social Media Company X Reclaims Its $44 Billion Valuation

Elon Musk’s social media platform X (formerly known as Twitter) is back in the spotlight. Acquired in 2022 for $44 billion, the platform’s valuation has reportedly returned to that level in recent updates. This news comes as multiple reports suggest that X’s valuation could now be as high as $44 billion, marking a surprising recovery after the ups and downs following Musk’s takeover.

When Musk purchased Twitter in 2022, the company faced turbulent times. Advertisers began abandoning the platform, leading to a significant drop in its valuation. Investors like Fidelity valued it at just $10 billion compared to the original $44 billion purchase price.

However, by 2025, the tide has turned. According to reports from Bloomberg, X holds a $6 billion stake in Musk’s AI company, xAI, which is now valued at $50 billion. This stake has boosted investor confidence and propelled X’s valuation back to its former heights.

Musk’s recent political influence has also played a key role in this resurgence. His partnership with U.S. President Donald Trump and his involvement in the Department of Government Efficiency (DOGE) have strengthened his global standing.

This has not only enhanced X’s brand value but also encouraged advertisers to slowly return. Despite a 28% drop in ad revenue in 2024, CEO Linda Yaccarino has claimed that 90% of advertisers have now come back to the platform.

A major factor in X’s success is xAI’s chatbot, Grok, which is available to X’s premium users. Built using data from Musk’s other ventures like Tesla and SpaceX, Grok is becoming increasingly sophisticated.

With xAI securing $6 billion in funding and its valuation soaring, X has become part of a broader tech ecosystem, further solidifying investor trust. Following the recent announcement of Grok 3, X also raised its Premium+ subscription price to approximately $50 per month.

However, how X will address its advertising revenue challenges remains to be seen in the coming months. While the valuation recovery is impressive, its long-term stability may depend on sustained ad growth and the continued success of xAI. For now, Musk has once again proven his ability to turn the tide in his favor.