Elon Musk sells X to his own xAI for $33 billion in all-stock deal
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“X” is also 88 in ASCII.
I did not know these things, but makes sense…
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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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I definitely see Google/Amazon/Microsoft shedding a huge amount of market cap when the time comes to write-off the 100s of billions they invested the past two years.
They just don't have any feasible path to recouping those investments.
Sure, they'll never go fully broke, that's just a nice word for emphasis.
I actually think Google is going to win this one, they're the only ones making their own hardware to run their own models. Open ai are starting down that road but they're years behind.
When you look at the pricing of all the AI companies, Google's is so much cheaper (orders of magnitude) and they're not having to pay Nvidia billions to do it.
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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.
yes its a perfect setup for a payoff.
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Is this so the loans secured with X stock can't be called in, forcing Elon to sell the collateral to pay back the loan?
Sure seems like a bullshit business move to retain control of Tesla.
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xAI's Partners:
A16Z, Blackrock, Fidelity Management & Research Company, Kingdom Holdings, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners, and Vy Capital, among others.
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Funny that people take this news as some kind of technological fusion between companies and not housekeeping of the dipshit's personal finances.
We don't have billions of dollars to have to do shit like this ourselves, so it doesn't seem real.
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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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The incumbents will go broke.
Can't wait! Gonna stock up on some popcorn lmao
And toilet paper. For whatever reason.
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I suspect the government(s) that represent the bulk of the funds behind xAI threw the money out to continue operating exactly as he has been.
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So hell get taxed for exchange of speculative assets right?... Right?!
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So hell get taxed for exchange of speculative assets right?... Right?!
No because it's a loss, so he'll actually get 10bln in tax credit
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His juvenile enthusiasm for the letter X is so ten-year-old boy with sunglasses.
He called the tesla models S3XY, and the 3 is only because Ford was gonna sue him if he used E.
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yes its a perfect setup for a payoff.
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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.
The investors have a seat in the board of directors in xAI, and for a shareholder deal you must have board approval. So at least more than 50% of the directors support this, meanings he is legally in the clear.
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yeah figure musk is a bit smarter so didn't need to get the loans he never pays back like trump.
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They owned it ever since Elon bought it, why do you think Elon was hanging out at the soccer world cup with Kushner and a bunch of high profile Saudi royals shortly before the purchase. They're backers.
He just announced four days ago that they're going to launch Tesla dealerships and have a big launch party April 10th in Saudi for the first time ever. Not because SA need or want them (they buy very few EVs as their domestic petrol prices are very cheap), but because they're stepping up to help his company during its current global dire sales downturn.
They've been close allies with Elon for a long time.
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Are the authorities aware? It's very illegal to sell exctacy in the US.
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I actually think Google is going to win this one, they're the only ones making their own hardware to run their own models. Open ai are starting down that road but they're years behind.
When you look at the pricing of all the AI companies, Google's is so much cheaper (orders of magnitude) and they're not having to pay Nvidia billions to do it.
I actually agree with you, they definitely have the edge, but I still am skeptical that they will be able to maintain their valuation.
I just don't see a world where most people are coughing up more than $10 a month for AI.
Most people will only use free AI and companies will mostly buy cheap AI.
Running Deepseek locally is basically free. That's the competition.
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For reference, he bought it for $44B.
https://wikipedia.org/wiki/Acquisition_of_Twitter_by_Elon_Musk
