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It appears that Elon Musk’s alleged “worst investment” is about to break even. As per a recent report, X is reportedly in talks to raise funds from investors at a $44 billion valuation.
Elon Musk paid $44 billion to acquire X, then called Twitter, in 2022. At the time, it was widely alleged that Musk had overpaid for the platform, and that he would likely never get his investment back.
The fundraising round:
- Citing people reportedly familiar with the matter, Bloomberg News has reported that talks of the funding round for X are still ongoing and that details could still change.
- If the funding round does push through, it would be the first investment round for X since Musk acquired the company in 2022.
- A valuation of $44 billion implies a rather impressive turn for X, considering that the company saw notable valuation cuts following Musk’s Twitter takeover.
- In December alone, Fidelity Investments marked down its Twitter stake by about 70% from the company’s $44 billion sale price.
- Fidelity’s estimate from December, however, was released prior to the current deal talks, Bloomberg noted.
- Recent reports have noted that Morgan Stanley is putting the final touches on the sale of $3 billion worth of X debt at no discount to face value due to high demand from investors.
- X, for its part, has not issued a comment about the matter.
The xAI difference:
- A key difference maker in X’s recent valuation round seems to be the social media platform’s stake in Elon Musk’s artificial intelligence startup, xAI.
- As per Bloomberg, X has a stake of about $6 billion in xAI.
- xAI is reportedly canvassing potential investors for a funding round that would value the company at about $75 billion.
- xAI is one of the fastest-rising companies in the artificial intelligence sphere, with the company recently launching the latest version of its flagship large language model (LLM), Grok-3.
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