Original Author: KarenZ, Foresight News
X is rapidly transforming into a super application platform that integrates social media, finance, AI, and more.
On June 19, X CEO Linda Yaccarino stated in an interview with the Financial Times that "users will soon be able to invest and trade directly on X. X credit and debit cards are also being explored and may be launched this year." Previously, X had announced that it would launch a digital wallet and peer-to-peer payment service, X Money, later this year, with Visa as its first partner. This news has further ignited expectations and imaginations about the prospects of X as a super application.
From Twitter to X: Musk's Vision for a Super Application
Tracing the origins of this vision, in October 2022, Musk completed the acquisition of Twitter for a staggering $44 billion, a deal that was considered one of the boldest bets in tech history at the time. Less than a year after the acquisition, in July 2023, Musk officially renamed Twitter to X, a simple letter that carries his grand vision of creating a "super application."
It is worth mentioning that Musk's connection to X began in 1999 when he co-founded the online bank X.com. In 2000, X.com merged with Confinity, which developed the PayPal payment system. After the merger, the company was renamed PayPal and was acquired by eBay for $1.5 billion in 2002, from which Musk profited about $165 million. Since then, Musk has had a fondness for "X," believing it represents infinite possibilities. In 2017, he repurchased the x.com domain from PayPal, and later completed the renaming and website transition after acquiring Twitter.
Musk's vision for a super application is not unfounded. He hopes to build X into a comprehensive platform that integrates various functions such as social networking, AI, payments, and financial services. This vision stems from his early experiences founding PayPal and his in-depth study of the Asian super application model.
The Pain of Transformation
However, there is a significant gap between ideals and reality. In the early stages of the acquisition, the X platform experienced unprecedented turmoil: massive layoffs led to a loss of technical talent, the platform's stability was questioned, drastic changes in content moderation policies raised concerns among users and advertisers, and advertising revenue plummeted.
In September 2023, Musk stated that since the acquisition, X's advertising revenue in the U.S. had shrunk by 60%. In October 2023, the New York Times reported that X was valued at only $19 billion, a 55% decrease from the acquisition price.
Meanwhile, although the paid subscription service X Premium introduced new revenue sources, it was far from compensating for the loss in advertising revenue. The platform also bore a debt of $12 billion incurred during the acquisition.
A Ray of Hope
After restructuring and diversifying, X has not completely escaped losses, but there has been progress in algorithm adjustments, the paid subscription model, and AI initiatives, leading to a narrowing of financial losses.
A significant turning point occurred during the 2024 U.S. presidential election. Musk's personal political leanings, combined with X's immense capability for real-time news dissemination and public discussion, quickly made the platform an important battleground for election discourse, viewed by outsiders as a "key driver" for Trump's victory.
At the same time, this political influence brought unexpected commercial value to X. Not only did advertisers begin to return, but more importantly, X established itself as the world's most influential real-time information platform. This influence is a crucial foundation for building financial services.
Additionally, starting in November 2023, X gradually integrated Grok, moving from initial grayscale testing to opening it to Premium+ subscribers, X Premium subscribers, and eventually making it fully available to users. This integration enhanced X's AI attributes and drove Grok to become a key component of X's super application.
This month, X CEO Linda Yaccarino stated in an interview with Yahoo Finance that "the platform is undergoing a historic transformation, with 96% of advertisers returning and a large influx of new advertisers." Furthermore, eMarketer predicts that with businesses returning to X and Musk's influence growing, X's global advertising revenue will increase by 16.5% this year, reaching $2.26 billion. If this goal is achieved, it will mark the first increase in advertising revenue since Musk took over X.
xAI Acquisition: A Dual Antidote of Technology and Capital
On March 29, 2025, Musk announced on X that xAI would acquire X in an all-stock transaction. This deal valued xAI at $80 billion and X at $33 billion (the $45 billion acquisition price minus $12 billion in debt). Musk's decision to acquire X through xAI may seem like a "left hand to right hand" maneuver, also reducing X's valuation (from $44 billion to a net worth of $33 billion), but it contains multiple strategic layouts. The $33 billion valuation may seem like a "shrinkage," but under the AI-driven super application vision, X's future value could far exceed expectations.
The core of xAI is artificial intelligence research and development, while X possesses vast amounts of real-time user data and content distribution capabilities. The acquisition deeply integrates the technological and data resources of both, forming a synergistic effect of "AI + social + finance."
Moreover, through the xAI acquisition, X's debt pressure was transferred to the new entity xAI, optimizing the capital structure. The independently operated X struggled to attract investment due to financial difficulties, but after the merger, investors were more willing to buy into the "AI + social media + finance" combination story. xAI, as a star company in the AI field, saw its valuation increase from $50 billion (in 2024) to $80 billion, giving it stronger financing capabilities. According to the latest reports from Reuters, xAI raised $14 billion through equity financing from its establishment in 2023 to earlier this year when it initiated debt sales, demonstrating its appeal in the capital markets.
Most importantly, Musk's ultimate goal is to build X into a super application that integrates social, payment, and investment functions. The acquisition of xAI provides technological and strategic support for this vision, accelerating the realization of functionalities. For example, Grok can offer intelligent investment advisory and risk assessment services. This month, X's collaboration with the prediction market platform Polymarket also indicates its ambitions in the financial ecosystem. xAI's AI technology can further enhance the accuracy of prediction markets, attracting more user participation.
However, according to a Bloomberg report this week, Grok's parent company xAI is facing financial pressure, expected to spend about $13 billion in 2025. Insiders added that xAI's frequent fundraising activities barely cover the company's expenses. This means xAI is burning over $1 billion a month, with nearly all funds expected to be exhausted by the end of this month. However, the company is seeking to raise $9.3 billion through debt and equity financing. Musk's goal for xAI is to achieve profitability by 2027.
The Future Landscape of X's Super Application
With the investment and trading features nearing launch, X's super application blueprint is gradually becoming clearer:
An all-encompassing social platform—centered on information and interaction: Utilizing real-time news and social discussions to become one of the preferred information sources for investors.
X Chat: X has rolled out the X Chat Beta feature to some users, supporting encrypted messaging, message self-destruction, and the ability to send any type of file, with added support for audio and video calls. This is built on a new architecture based on Rust, featuring (Bitcoin-style) encryption.
X Money financial services ecosystem: Peer-to-peer payments, investments, trading, enhanced by Grok's intelligent investment advisory, deep integration of prediction markets, and credit/debit cards may also be included in X Money. Visa is the first partner for X Money Account, allowing X users to transfer funds between traditional bank accounts and digital wallets and conduct instant peer-to-peer payments. Notably, X Payments LLC has obtained licenses in 43 U.S. states.
AI-driven intelligent experience: Grok is integrated into X, supporting users in obtaining real-time news, market dynamics, or social media trends and analyses through deep integration with the X platform.
Summary
If X's super application features (such as payments and investments) are successfully implemented, its user stickiness and revenue sources are expected to achieve a qualitative leap. However, it also faces challenges such as regulatory pressures.
X stands at a critical crossroads. If successful, it will become the first true super application in the Western world, proving that Musk's $44 billion bet was worthwhile. This will not only redefine social media but also reshape the landscape of financial services.
From Twitter to X, and soon to be a super application, Musk is proving that in the AI era, the boundaries between information, social interaction, and finance are disappearing. And X may just be the first successful case of this new era.
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