A rapid series of agreements between US companies and Tesla CEO Elon Musk's businesses reflect optimism regarding his proximity to President Donald Trump. Amid concerns over aggressive steps Musk has taken to reorganize the federal government, the deals indicate that the world's richest man is amassing an alarming amount of power.
Some of the announcements signal a potential reversal of fortunes following Musk's troubled takeover of X, formerly known as Twitter. In 2022, Musk proposed purchasing Twitter for $44 billion and unsuccessfully attempted to back out of the deal. The social media network has since lost most of its value as advertisers exited the platform over concerns about hate speech.
However, Bloomberg recently reported that a group of banks led by Morgan Stanley plans to sell up to $3 billion of Twitter's debt, boosted by a $6 billion stake in Musk's artificial intelligence startup xAI. Amid dramatic growth in the AI industry, recent fundraising valued xAI at $50 billion.
Additionally, major advertisers have begun returning to Twitter. Sources told The Wall Street Journal that Amazon is increasing its ad spending on the platform, and Apple is considering gradually returning to the platform after its 2023 exit.
Another deal that could help Musk increase Twitter's value, settle its debt, and realize his broader ambitions for the social network comes from Visa. The credit card company plans to become the first to allow peer-to-peer payments, wallets, and bank transfers directly through the platform.
After acquiring the social media network, Musk said he wished to transform it into an "everything app" resembling China's Weibo, which combines aspects of Twitter, Amazon, and PayPal. Visa may have just become the first partner to buy into the billionaire's dream.
Another milestone for the Everything App: @Visa is our first partner for the @XMoney Account, which will debut later this year.
– Linda Yaccarino (@lindayaX) January 28, 2025
Allows for secure + instant funding to your X Wallet via Visa Direct
Connects to your debit card allowing P2P payments
Option to instantly…
Musk's Starlink internet service has also received new partners following the CEO's growing presence in Trump's inner circle. United Airlines has accelerated its timeline for implementing the satellite service to provide in-flight Wi-Fi, and select iPhone users with T-Mobile can now test the satellite-to-cell service in remote locations lacking traditional coverage.
These and other agreements come as Musk's newly branded Department of Government Efficiency (DOGE) has seized vital federal government mechanisms. After Musk spent over $260 million boosting Trump's reelection campaign, the incoming president gave him an office in the White House and tasked DOGE with finding ways to slash federal spending. The tech CEO aims to cut $2 trillion.
In the opening weeks of Trump's new administration, DOGE has gained access to US Treasury systems that control Social Security, Medicare, and tax return payments. Some fear Musk could use the data to illegally halt funding of government programs.
Musk has also pressured government employees to resign and halted operations at USAID, which oversees the deployment of lifesaving medicine and other foreign aid worldwide. Although the organization hasn't been completely dissolved, and some forms of aid are exempt from recent cuts, DOGE is reportedly still blocking HIV/AIDS relief.
As members of Congress call the tech CEO's actions illegal and dangerous, investors have begun viewing his businesses as a relatively safe bet. Despite rising competition in sectors like electric vehicles and AI, rising shares have ballooned Musk's net worth since the November election, making him worth almost as much as Amazon founder Jeff Bezos and Meta CEO Mark Zuckerberg combined.
