• by Colin Kirkland , March 20, 2025

Elon Musk's X is now valued at $32 billion due to an additional $1 billion the social-media company has raised in new equity from unidentified investors.

The funding was first reported by Bloomberg, which says X is likely to use a portion of the money to pay down its debt.

Musk himself was an investor, putting more of his own money into the platform, along with Darsana Capital Partners, which bought some of X's debt earlier this year.

Still, with new funding, the current valuation of the company is significantly lower than the $44 billion Musk paid for the platform -- previously known as Twitter -- in 2022. When Musk privatized the platform, he also took on at least $12.5 billion in debt.

Based on data that X shared with potential investors in January, however, the company is close to breaking even -- stating that the app made $2.6 billion in total net revenue for 2024.

While X generated much more money prior to Musk's takeover -- $5 billion in 2021 -- the billionaire's significant cost cuts, especially with regard to the elimination of 80% of the company's staff, even out its monetary losses.

Due to controversial staff cuts, the proliferation of harmful content and threats aimed at advertisers, Fidelity Investments -- which contributed over $300 million in Musk's takeover -- marked its stake in the company down 71% compared to when Musk acquired X, valuing it at just $12.5 billion in early January.

In February, Bloomberg reported that X's talks with investors would help the company reclaim its original valuation of $44 billion.

Although this has not materialized, the platform has regained some advertising dollars, as Musk uses his newfound political power and a major lawsuit to threaten major brands to return to X.