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Elon Musk's Twitter buyout is starting to look like a steal

Dec 02, 2024 - businessinsider.com
Elon Musk's $44 billion acquisition of Twitter, now X, initially viewed as overpriced, has proven beneficial for his $50 billion startup xAI. Musk has used X as a political platform, gaining influence in the Trump administration, and as a valuable source of training data for xAI. Despite a decrease in X's users and its value being written down by co-investors, xAI's access to X's data has given it a competitive edge, contributing to its rising valuation.

However, the future of X's support for xAI and its political influence is uncertain. Legal challenges over user data gatekeeping and competition from rival social media platforms pose potential threats. Despite these challenges, Musk's use of X for personal and business purposes has reinforced his reputation as a visionary entrepreneur.

Key takeaways:

  • Elon Musk's acquisition of Twitter, now known as X, was initially seen as overpriced but has since provided significant benefits for Musk, including political influence and a valuable data source for his startup, xAI.
  • Musk has used X to support Trump's reelection and has been appointed by the president-elect to run a new Department of Government Efficiency, aiming to cut federal spending and regulations.
  • X faces legal challenges over user data gatekeeping and competition from other social media platforms, which could potentially affect its value to xAI.
  • Despite initial backlash and ongoing challenges, Musk's use of X for personal and business purposes could prove highly lucrative if he decides to sell or take the company public in the future.
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