X: The Evolution from Social Media to Super Apps

The evolutionary path of X's super application.

Written by: KarenZ, Foresight News

X is rapidly transforming into a super application platform that integrates social media, finance, AI, and more.

In an interview with the Financial Times on June 19, X CEO Linda Yaccarino said, "Users will soon be able to invest and trade directly on X. X credit or debit cards are also being explored, possibly this year." X has already said it will launch a digital wallet and peer-to-peer payment service X Money later this year, and Visa will be its first partner. This news has further ignited anticipation and imagination about the future of the X Super App.

From Twitter to X: Musk's Vision for a Super App

Going back to the origins of this vision, in October 2022, Musk completed the acquisition of Twitter for a sky-high price of $44 billion, a deal that was considered one of the boldest bets in tech history at the time. Less than a year after the completion of the acquisition, in July 2023, Musk officially changed the name of Twitter to X, and behind this simple letter, carries his grand vision to build a "super app".

It is worth mentioning that Musk's relationship with 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 changed its name to PayPal and was acquired by eBay in 2002 for $1.5 billion, from which Musk made about $165 million. Since then, Musk has always had a soft spot for "X", believing that it represents infinite possibilities. In 2017, he bought back the x.com domain name from PayPal, and then completed the name change and website replacement after acquiring Twitter.

Elon Musk's vision for a super app is not without foundation. He aims 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 experience founding PayPal and his in-depth study of the Asian super app model.

The Pain of Breaking Out of the Cocoon

However, there is a huge gap between ideals and reality. During the early stages of the acquisition, the X platform experienced unprecedented turmoil: large-scale layoffs led to the loss of the technical team, the platform's stability was once questioned, drastic changes in content review policies raised concerns among users and advertisers, and advertising revenue plummeted.

Elon Musk stated in September 2023 that advertising revenue on the X platform in the U.S. has decreased by 60% since the acquisition deal. In October 2023, The New York Times reported that X was then valued at only $19 billion, a 55% drop from the acquisition price.

At the same time, while Elon Musk's paid subscription service X Premium has brought in new revenue sources, it is far from sufficient to offset the loss of advertising revenue. The platform is also burdened with a $12 billion debt incurred during the acquisition.

The willows are dark and the flowers are bright

After restructuring and diversification, X has not completely eliminated its losses, but there has been progress in the layout of algorithm adjustments, paid subscription models, and AI, resulting in a narrowing of financial losses.

A major turning point appeared during the 2024 U.S. presidential election. Musk's personal political inclinations, combined with the X platform's immense capability for real-time news dissemination and public discussion, rapidly made the platform an important battleground for public opinion in the election, viewed by outsiders as a "key driver" for Trump's victory.

At the same time, this political influence has brought unexpected commercial value to X. Not only have advertisers started to return, but more importantly, X has established its position as the world's most influential real-time information platform. This influence is precisely the important foundation for building financial services.

In addition, starting from November 2023, X will gradually integrate Grok, beginning with a grayscale test, then opening it to Premium+ subscribers and X Premium subscribers, and eventually making it fully available for free to users. Later, it will be incorporated into X's conversational responses, enhancing the AI attributes of the X platform and driving Grok to become a key part of X's super application.

This month, X CEO Linda Yaccarino stated in an interview with Yahoo Finance, "The platform is undergoing a historic transformation, with 96% of advertisers returning and a large influx of new advertisers." Additionally, eMarketer predicts that as businesses return to X and with the increased influence of Musk, X's global advertising revenue will grow by 16.5% this year, reaching $2.26 billion. If this target is achieved, it will mark the first increase in advertising revenue since Musk took charge of X.

xAI Acquisition: A Dual Remedy of Technology and Capital

On March 29, 2025, Musk announced on X that xAI acquired X through an all-stock transaction. This deal valued xAI at $80 billion and X at $33 billion (the $45 billion valuation minus $12 billion in debt). Musk's decision to acquire X through xAI seems like "robbing Peter to pay Paul", and it also lowered X's valuation (from $44 billion to $33 billion net worth), but it actually contains multiple strategic layouts. The $33 billion valuation seems to be "shrinking", but under the vision of AI-driven super applications, X's future value may far exceed expectations.

The core of xAI is artificial intelligence research and development, while X possesses a massive amount of real-time user data and content distribution and dissemination capabilities. The acquisition will deeply integrate the technologies and data resources of both, creating a synergistic effect of "AI + social + finance."

In addition, through the acquisition of xAI, X's debt pressure was transferred to the new entity, xAI, optimizing the capital structure. X, which operates independently, struggled to attract investment due to its financial difficulties, and after the merger, investors are more willing to pay for the combined story of "AI + social media + finance". As a star in the AI space, xAI has increased its valuation from $50 billion (2024) to $80 billion, and has stronger financing capabilities. From its inception in 2023 to its launch of a debt sale earlier this year, xAI raised $14 billion through equity financing, demonstrating its capital market appeal, according to the latest Reuters report.

The most important thing is that Musk's ultimate goal is to transform X into a super application that integrates social, payment, investment, and other functions. The acquisition of xAI provides technical and strategic support for this vision, accelerating the implementation of features. For example, Grok can offer smart investment advisory, risk assessment, and other services. This month, the collaboration between X and the prediction market platform Polymarket also indicates its ambition in the financial ecosystem. The AI technology of xAI can further enhance the accuracy of the prediction market, attracting more users to participate.

However, according to Bloomberg's report this week, Grok's parent company, xAI, is under financial pressure and is expected to spend about $13 billion in 2025. The people added that xAI's frequent fundraising activities barely covered the company's expenses. This means that xAI is burning more than $1 billion a month, and almost all of it will be depleted by the end of this month. Still, the company is looking to raise $9.3 billion through debt and equity. Musk's goal for xAI is to be profitable by 2027.

The Future Landscape of X Super Apps

With the impending launch of investment trading features, the blueprint for X's super application is gradually becoming clear:

• All-in-one social platform - the center of information and interaction: Become one of the preferred information sources for investors by utilizing real-time news and social discussions.
• X Chat: X has launched the X Chat beta feature to some users, which supports the ability to encrypt messages, self-destruct messages, and send any type of file, and adds support for audio and video calls. This is built on top of Rust with a completely new architecture with (Bitcoin-style) encryption.
• X Money Financial Services Ecosystem: Peer-to-peer payments, investments, transactions, Grok robo-advisors, deep market integration and credit/debit cards may also be included in X Money. Visa is the first partner of X Money Account and will allow X users to transfer funds between traditional bank accounts and digital wallets, as well as make instant peer-to-peer payments. It is worth mentioning that X Payments LLC is licensed in 43 states in the United States.
• AI-driven intelligent experience: Grok is integrated into X, supporting users to access real-time news, market dynamics, or social media trends and analysis through deep integration with the X platform.

Summary

If the super application features of X (such as payment and investment) are successfully implemented, its user stickiness and revenue sources are expected to achieve a qualitative leap. However, it also faces challenges such as regulatory pressure.

X is standing at a critical crossroads. If successful, it will become the first true super app in the Western world, proving that Musk's $44 billion bet was worth it. This will not only redefine social media but also reshape the landscape of financial services.

From Twitter to X, and to the upcoming super app, Musk is proving that in the era of AI, the boundaries between information, social interaction, and finance are disappearing. And X may be the first successful case of this new era.