Elon Musk’s social media company, X, formerly known as Twitter, has reached a settlement with Donald Trump, agreeing to pay approximately $10 million to resolve a lawsuit related to Trump’s account suspension. The lawsuit, which followed the January 6, 2021, U.S. Capitol riot, marks the conclusion of a prolonged legal dispute over the role of social media in moderating political content.

Trump, who is currently serving as President of the United States after winning the 2024 election, originally sued Twitter in 2021, along with then-CEO Jack Dorsey. His lawsuit argued that the platform had violated his First Amendment rights by banning his account following the Capitol riot. Twitter justified its decision by stating that Trump’s posts had the potential to incite violence, particularly as he continued to challenge the legitimacy of his 2020 election loss to Joe Biden.

A federal district court dismissed Trump’s lawsuit in 2022, but he pursued an appeal. That appeal remained unresolved until February 2025, when the 9th Circuit U.S. Court of Appeals dismissed the case following a settlement agreement between Trump and X. The Wall Street Journal first reported the resolution, with NBC News later confirming that Musk’s company had agreed to pay $10 million as part of the settlement. However, X’s legal team has not yet issued an official statement regarding the agreement.

Elon Musk, who acquired Twitter for $44 billion in October 2022, has played a pivotal role in reshaping its policies. One of his earliest decisions was reinstating Trump’s account in November 2022, signaling a departure from the platform’s previous content moderation strategies. Musk has frequently advocated for broader free speech policies on X, positioning the platform differently from its major competitors in the social media landscape.

Trump’s legal battle with social media platforms has not been limited to X. In a related case, Meta, the parent company of Facebook and Instagram, agreed on January 29, 2025, to pay $25 million to settle a similar lawsuit. Like Twitter, Facebook and Instagram had suspended Trump’s accounts following the January 6 riot, prompting legal challenges from the former president. These settlements highlight the ongoing tension between tech companies and political figures regarding content regulation and platform accountability.

Beyond the legal disputes, Musk and Trump have developed a growing political alliance. Musk is currently involved in the Trump administration through a government initiative called the Department of Government Efficiency (DOGE), which focuses on reducing federal spending and restraining government expansion. His role in this initiative aligns with his broader advocacy for efficiency-driven government reforms.

Additionally, reports suggest that Musk has invested more than $250 million in Trump’s reelection campaign, strengthening the connection between the billionaire entrepreneur and the sitting president. His financial contributions and advisory role indicate a deepening relationship between the two figures, with implications that could extend beyond social media and into broader political and economic spheres.

The $10 million settlement between X and Trump concludes a notable chapter in Trump’s legal confrontations with tech giants. However, it also reflects wider shifts in how social media companies navigate their relationship with high-profile political figures. Under Musk’s leadership, X has adopted a stance on content moderation that diverges from its previous policies, embracing a more open approach to political discourse.

While Trump’s settlements with X and Meta indicate a changing digital landscape, it remains uncertain whether these shifts will have long-term effects on how social media platforms handle political speech. The evolving relationship between the tech industry and public officials underscores the growing debate over free expression, platform responsibility, and the regulation of online content in an increasingly digital age.