Elon Musk attempts to raise 44 billion dollars for X amid controversies

Elon Musk's social media platform X, previously known as Twitter, is engaged in discussions with investors regarding a new financing round aimed at raising capital. Reports suggest that this funding round would maintain the platform's valuation at 44 billion dollars, a figure that aligns with the amount Musk paid during his acquisition of Twitter in late 2022. Since taking over, Musk has implemented several controversial changes, including modifying the verified accounts system and increasing paid subscriptions while allowing previously banned accounts back on the platform. These significant changes have led to a notable decrease in advertiser interest and user engagement. Following a series of controversies under Musk's leadership, many high-profile advertisers have exited the platform, prompting users to flock to competing social media sites, such as Bluesky, which has reported a rise in their user base. The ongoing decline in advertiser spending is a focal concern for industry experts, who previously believed that X's value had dropped significantly below the 44 billion dollars valuation. Despite the challenges facing X, there are hints of potential investor optimism, owing largely to Musk's connections with key political figures, including former U.S. President Donald Trump. This relationship has sparked investor interest, as there are expectations that it may become advantageous for all of Musk's enterprises over time. Reports indicate that shares in Musk's electric vehicle company, Tesla, have appreciated by approximately 40% since Trump's election. Additionally, Musk's AI venture, xAI, is also reportedly seeking funding, anticipating a valuation of 75 billion dollars. The recent unveiling of the AI model Grok 3 by xAI, which Musk claims to be superior to existing competitors like OpenAI's ChatGPT, has further drawn attention to his ambitious pursuits. Overall, the ongoing financing discussions for X reflect a complex interplay of Musk's business maneuvers, investor sentiments, and the volatile environment of social media marketing and management.