Austin, January 25: Elon Musk bought Twitter in 2022 for a whopping USD 44 billion, and since then, the valuation has decreased significantly. Despite bringing various changes to the platform, including renaming it to X from Twitter, introducing long-form articles, video live-streaming, and many other improvements such as AI integration, the company has reportedly been in a "dire situation" in terms of revenue.

According to a report by The Verge, the banks that financed Elon Musk to buy Twitter (now called X) were planning to make a "coordinated move" to sell some of the USD 13 billion debt. The report said that Elon Musk emailed the X staff and said that the company was barely breaking even. Elon Musk reportedly said in an email to the staff that the X shaped national conversations and outcomes; however, the user growth on the platform was "stagnant" and "unimpressive". Elon Musk Becomes Most Followed User on X, Surpasses Over 214 Million Followers.

The banks and financial institutions, including Bank of America, Morgan Stanley and Barclays, were among those who loaned Elon Musk money to buy X (previously Twitter). They tried to avoid selling at a loss after challenging economic conditions. The report mentioned that banks hoped to sell senior debts at 90% to 95% on the dollars and more junior holdings.

The report highlighted that Elon Musk's link to US President Donald Trump could benefit some investors who hoped to see a financial rise. Despite these, X-owner Musk said that the company would see positive cash flow in some months nearly two years ago; however, lately, it has become a testing ground of artificial intelligence, according to The Verge. Although X added several new features, Elon Musk fell short of his words, saying that people could manage their entire financial life on the platform by the end of 2024. Grok New Feature Update: Elon Musk’s xAI May Soon Allow Users To Customise AI Chatbot for Personalised Response.

Elon Musk is also optimistic about the xAI and its integration into the X platform regarding Grok and other future projects. Grok 3 will be launched this year and will be trained on the Supercomputer Colossus.

(The above story first appeared on LatestLY on Jan 25, 2025 11:09 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).