Elon Musk’s X in talks to raise funding at $44B valuation amid investor optimism and Grok 3’s successful debut

Elon Musk’s social media platform X is reportedly in talks to secure new funding at a $44 billion valuation amid investor optimism, Bloomberg News reported on Wednesday.

If successful, the funding round could signal a major comeback for the company after Musk’s takeover and sweeping changes drove away users and advertisers. Before these latest talks, Fidelity Investments had already slashed the value of its Twitter stake by roughly 70% from the 2022 purchase price.

Elon Musk’s AI startup xAI to Raise $10 Billion at a $75 Billion Valuation

The report also added that Musk’s AI startup xAI is also looking to raise $10 billion at a $75 billion valuation, more than doubling its previous valuation of $40 billion. The news follows the successful debut of its Grok 3 AI model, which overtakes DeepSeek on the App Store, becoming the second most popular chatbot within 12 hours of launch.

“Elon Musk’s X is in talks to raise money from investors at a $44 billion valuation, according to people familiar with the matter. That is the same price that Musk paid for the social media company in 2022, when it was called Twitter,” Bloomberg reported.

Bloomberg reported that late last year, Fidelity Investments cut its valuation of X by more than 70% from its 2022 purchase price.

Meanwhile, Prince Alwaleed bin Talal, a major investor in X, offered a different perspective during a recent interview with Tucker Carlson. “We never devalued it [X]. Some entities marked it down by 30, 40, even 50%. But now, after the election, with President Trump and the strong alliance between Musk and Trump, we’ve seen the market revalue X dramatically—at least to its original $44 billion valuation,” he said.

Musk took X private in 2022, paying the same $44 billion price tag, but some investors, including Fidelity Investments, have since marked down their stakes.

Advertiser pullback after the acquisition made it harder for the platform to maintain revenue, but recent trends suggest a shift. Some advertisers have returned, and Musk’s close ties to Donald Trump—coupled with his other ventures’ growth—have fueled optimism about X’s financial outlook.

Tesla shares have surged more than 40% following Trump’s election victory, while SpaceX was valued at $350 billion as of December. Investors are showing fresh interest in Musk-led businesses, and that momentum seems to be benefiting X. A source told Reuters that banks, led by Morgan Stanley, recently sold another significant portion of the $13 billion in debt tied to Musk’s Twitter acquisition, with large fund managers buying in, betting on X’s improving revenue.

Discussions about the new financing round for X are ongoing, and details could change, Bloomberg reported. If finalized, this would mark the first outside investment in the platform since Musk’s buyout.