Elon Musk’s social media platform X has successfully raised almost $1 billion in new equity funding, bringing its valuation back in line with the $44 billion enterprise value at which Musk took the company private in 2022. The latest funding round values X at approximately $32 billion and includes participation from Musk himself.

According to sources familiar with the matter, some of the proceeds from this equity round may be directed towards reducing the company’s remaining debt, which was initially part of Musk’s acquisition package involving over $12.5 billion in debt. Notable participants in this funding include Darsana Capital Partners, which previously acquired some of X’s debt, and 1789 Capital, an investment firm connected to Musk’s other ventures like xAI and SpaceX. Aliya Capital Partners also expressed their enthusiasm for participating in this round, highlighting their long-standing support for Musk and belief in his ability to drive transformative change across industries.

This financial boost marks a significant turnaround for Musk and his handpicked CEO, Linda Yaccarino, who are working to transform X into an “everything app” with redefined content moderation standards and plans for an integrated payment platform.

Following Musk’s acquisition, the platform initially faced a steep decline in value, compounded by mass layoffs and a significant loss of corporate advertisers. This turmoil resulted in revenue plummeting, with Fidelity Investments marking down its stake in X by 72% since the acquisition. Despite these challenges, recent reports indicate X generated about $1.2 billion in adjusted earnings before interest, taxes, depreciation, and amortization, suggesting a resurgence to revenue levels comparable to those prior to Musk’s takeover.

Musk’s strategy has included the introduction of a premium subscription service featuring “blue checkmark” verification for paying users and the development of an AI chatbot named “Grok,” created through his startup xAI. With the backing of Silicon Valley heavyweights like Andreessen Horowitz and Sequoia Capital, Musk’s ambitious vision for X as an integrative platform continues to gain momentum, positioning it as a key player in the future of social media.