Elon Musk sells X to his own xAI for $33 billion in all-stock deal
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I’m surprised the Twitter investors would approve this. Their worthless Twitter stock is now worthless xAI stock. How does that help them?
I guess they’ll try to take xAI public with a massively overpriced IPO.
The whole point of buying Twitter was to take it private. IPO for xAI would hilariously undo that.
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I’m surprised the Twitter investors would approve this. Their worthless Twitter stock is now worthless xAI stock. How does that help them?
I guess they’ll try to take xAI public with a massively overpriced IPO.
Xitter investors got scammed and there was no way that xitter would be able to pay 1 billion per year in interest. Better having someone else holding the bag
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$33 billion, 3/4 what it was valued in 2022 when he bought it.
Honestly I'm surprised it's still worth that much. (or rather, that's he's succeeded in claiming it's worth that much).
xAI has raised maybe $12B from investors. And, supposedly, makes $100M/yr.
The valuations are absurd.
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His juvenile enthusiasm for the letter X is so ten-year-old boy with sunglasses.
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using AI hype to finance X loans?
Correct.
It's actually a smart move.
The dumb money are those pouring hundreds of billions into the AI hype. This is .com bubble on steroids.
And sure, AI obviously is becoming an important market, but it will not be the current leaders who will dominate the tech. Like the internet, it's just too easy to catch up for competitors. Pouring $100B into AI today will only mean you lose out to the $1B startup in 2 years. The incumbents will go broke.
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Who did that‽ It's so beautiful, it should be posted all over Xitter lol
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Correct.
It's actually a smart move.
The dumb money are those pouring hundreds of billions into the AI hype. This is .com bubble on steroids.
And sure, AI obviously is becoming an important market, but it will not be the current leaders who will dominate the tech. Like the internet, it's just too easy to catch up for competitors. Pouring $100B into AI today will only mean you lose out to the $1B startup in 2 years. The incumbents will go broke.
The incumbents will go broke.
Can't wait! Gonna stock up on some popcorn lmao
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I’m surprised the Twitter investors would approve this. Their worthless Twitter stock is now worthless xAI stock. How does that help them?
I guess they’ll try to take xAI public with a massively overpriced IPO.
I am more surprised xAI investors approved. Especially for such a high price.
Twitter actually imo had (and still has) quite a bit of value, but that is only to further Elons ideological goals. As a business it is on a downward trend and was never a cash cow to begin with. Comparatively little room for speculation. It's a stagnating or declining business and doesn't generate large profits if any.
xAI on the other hand is pretty much in the same spot as most other ai companies. It has yet to prove to be a highly profitable business, but there is plenty of room for speculation. So as long as the bubble doesn't burst, it has a high valuation.
Which is all that would matter for any Twitter investor that wants to unload his shares. Although I doubt it would be via ipo, but rather in private funding rounds.
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Well, not really. Twitter was his own private property that he bought with borrowed money secured against his Tesla shares. xAI on the other hand is financed by investors whose money he used to bail himself out at a price he made up himself since Twitter is no longer publicly traded. So this is, in my opinion, misuse of investor funds; the picture would be true if xAI used how own money to do this, but no.
On one hand,I think this is serious fraud. On the other, my understanding for anyone investing into his companies is very limited, there are so many red flags on so many levels.
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Correct.
It's actually a smart move.
The dumb money are those pouring hundreds of billions into the AI hype. This is .com bubble on steroids.
And sure, AI obviously is becoming an important market, but it will not be the current leaders who will dominate the tech. Like the internet, it's just too easy to catch up for competitors. Pouring $100B into AI today will only mean you lose out to the $1B startup in 2 years. The incumbents will go broke.
The incumbents will go broke.
Who do you mean with that? Companies like OpenAI or Anthropic, or do you also include the likes of Google/Amazon/Microsoft?
With the former I can see it, but the later also profit from providing the infrastructure (and have other profitable business), so imo those will be just fine.
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I mean, with an Elon company who knows.
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Phew. Just in time to avoid fraud charges on the loan.
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What's the point? Is it some sort of tax scheme?
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You think Elon actually does anything besides sign the check?
Yeah, he yells at people to go faster and ignore industry best standards or be fired.
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$33 billion, 3/4 what it was valued in 2022 when he bought it.
Honestly I'm surprised it's still worth that much. (or rather, that's he's succeeded in claiming it's worth that much).
It dropped a lot lower than that but spiked back up once he became the leader of America
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Who did that‽ It's so beautiful, it should be posted all over Xitter lol
Just confirming Xitter is pronounced “shitter” right?
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What's the point? Is it some sort of tax scheme?
Restructuration of ownership and debt so that if Tesla fails he get to keep his assets in his other non public companies. At one point Tesla stock was leveraged to buy Twitter, i think that Elon shielded his assets because Tesla is way too exposed.
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Well, not really. Twitter was his own private property that he bought with borrowed money secured against his Tesla shares. xAI on the other hand is financed by investors whose money he used to bail himself out at a price he made up himself since Twitter is no longer publicly traded. So this is, in my opinion, misuse of investor funds; the picture would be true if xAI used how own money to do this, but no.
On one hand,I think this is serious fraud. On the other, my understanding for anyone investing into his companies is very limited, there are so many red flags on so many levels.
To understand Musk/Trump investors, imagine the investment to be an NFT.
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Just confirming Xitter is pronounced “shitter” right?
That's how I've been pronouncing it in my head when I read it.
I still say "Twitter" though because that and the gulf of Mexico are the only things I feel are okay to deadname.
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That's how I've been pronouncing it in my head when I read it.
I still say "Twitter" though because that and the gulf of Mexico are the only things I feel are okay to deadname.
Until the Gulf of Mexico becomes sentient and tells me it prefers to be called the Gulf of America, I will continue to call it what the rest of the world calls it.
