Elon Musk’s acquisition of Twitter in 2022, rebranded as X, faced significant challenges, including declining revenues and advertiser departures due to content moderation concerns. At one point, Musk acknowledged the company was nearing bankruptcy.
However, a turnaround began in 2023 with the launch of his artificial intelligence company, xAI, granting X a 25% stake. This stake gained substantial value, bolstering X’s financial position.
Musk’s proximity to President Trump further encouraged advertisers to return, slightly reviving ad revenue by the end of 2024. In early 2025, investor sentiment shifted as major buyers purchased over $10 billion in X debt, significantly more than the $3 billion banks initially planned to sell.
A pivotal moment occurred when Musk announced a merger between X and xAI, valuing the combined company at over $100 billion. The integration of xAI’s Grok chatbot into X aligns with Musk’s vision of transforming X into an “everything app.” This merger, supported by renewed investor confidence and strategic cost-cutting, marks a significant recovery for a company once on the brink of collapse and represents a major milestone in Musk’s broader ambitions
