New York — When Elon Musk took control of Twitter in October 2022 for a staggering $44 billion, the move was widely regarded as one of the most questionable business decisions in recent history. The price tag alone seemed excessive for a platform that had been struggling with revenue generation, declining user engagement, and an ad business that was already showing signs of vulnerability. Musk’s immediate and radical changes—mass layoffs, policy reversals, and the dismantling of Twitter’s traditional verification system—only added to the uncertainty surrounding the platform’s future. Within months, Twitter, rebranded as X, found itself in turmoil, facing a mass exodus of advertisers, plummeting valuation, and increasing scrutiny over its content moderation policies.
Nearly two and a half years later, the landscape looks dramatically different. According to Bloomberg, X is in discussions to raise new funds at a valuation of $44 billion, a figure that would bring it back to the level Musk initially paid for it. Although these talks remain ongoing and there is no certainty that the valuation will be fully realized, the shift in momentum is undeniable. A company that once seemed destined for financial ruin is now making a strong case for its survival—and even its resurgence.
A major driver of this turnaround has been the return of high-profile advertisers. When Musk’s policy changes led to a surge in hate speech and extremist content, major brands swiftly withdrew their advertising budgets, fearing reputational damage. Companies like Disney, Apple, and Amazon distanced themselves from X, unwilling to risk their image by associating with a platform that had become increasingly unpredictable. However, recent reports suggest that both Apple and Amazon are reinvesting in X’s advertising campaigns, a development that signals a potential renewal of confidence in the platform. This return is not just a financial boost but also a symbolic victory for Musk, demonstrating that, despite its controversial transformation, X still holds immense influence in the digital advertising ecosystem.
Another key factor in X’s resurgence is its strategic alignment with Musk’s broader technological empire. X holds a stake in xAI, Musk’s artificial intelligence company, which is currently seeking a valuation of $75 billion in its latest funding round. This connection has added significant value to X’s potential as an investment vehicle. Investors who may have been skeptical about X as a standalone social media platform are now looking at its ties to AI development as an indicator of its long-term viability. If xAI continues to expand and gain traction in the artificial intelligence sector, X could benefit both financially and strategically, further bolstering its position in the market.
At the center of this revival remains Musk himself. His unpredictable leadership style, often criticized for its impulsiveness, has paradoxically become one of X’s greatest assets. The billionaire’s ability to generate headlines, disrupt industries, and command the attention of millions has ensured that X remains a focal point in the social media landscape. Investors who are betting on X are, in many ways, placing their confidence in Musk rather than the platform’s business fundamentals. His growing influence within the U.S. government, particularly his appointment as a special government employee under the Trump administration, has only reinforced this perception.
Musk’s involvement in politics has further intertwined X with the broader sociopolitical landscape. The platform has become an unofficial hub for pro-Trump rhetoric, with Musk himself using it to amplify messages that align with the administration’s stance. In the process, X has cemented its status as the primary social media space for real-time political discourse, making it indispensable for journalists, policymakers, and influencers seeking direct engagement with the Trump White House.
Despite this resurgence, X continues to face significant challenges. The company’s initial missteps under Musk’s leadership alienated a portion of its user base, and alternative platforms have emerged as competitors in the wake of Twitter’s transformation. While Musk has made strides in stabilizing X’s operations and finances, the long-term sustainability of the platform remains uncertain. However, if history has proven anything, it is that Musk thrives in adversity—and for now, X is once again commanding attention in a way few thought possible.
