Elon Musk sells X to his own xAI for $33 billion in all-stock deal
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Ah shit so maybe not fraud but bribery.
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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So Saudi's etc now officially own Twitter.
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
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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.
I don't understand how this gets him free of the loans. My understanding is that he financed $14B of the Twitter purchase with loans secured against Tesla stock. That $14B worth of twitter stock was then owned by Musk and he also had a loan.
This was an all stock purchase, so xAI stock was exchanged for equivalent value of Twitter stock (keep the old name to keep it clear). Now Musk's twitter stock that he bought with the $14B will become the equivalent value of xAI stock, and he still has the loan that bought it in the first place.
Unless $14B of stock has been sold somewhere to repay the loans they still exist.
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xAI has raised maybe $12B from investors. And, supposedly, makes $100M/yr.
The valuations are absurd.
"Makes" by selling what exactly?
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I don't understand how this gets him free of the loans. My understanding is that he financed $14B of the Twitter purchase with loans secured against Tesla stock. That $14B worth of twitter stock was then owned by Musk and he also had a loan.
This was an all stock purchase, so xAI stock was exchanged for equivalent value of Twitter stock (keep the old name to keep it clear). Now Musk's twitter stock that he bought with the $14B will become the equivalent value of xAI stock, and he still has the loan that bought it in the first place.
Unless $14B of stock has been sold somewhere to repay the loans they still exist.
To know how exactly it works, we'd need to know details that aren't public.
But just speculating, if the creditors value the combined xAI+X higher than just X, then there is room to transfer the loan to the new company and away from Tesla.
But whatever the details are, Elon isn't an idiot when it comes to money. He definitely has advisors who cooked up the optimal way to profit from the AI hype.
And the essence of that is that Tesla shareholders will be left holding the bag, while Elon utiizes X/xAI to capitalize on the hype.
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"Makes" by selling what exactly?
Subscriptions and licensing, supposedly.
$12B is just how much money investors put into it. The company’s valuation is $80B. Which is insane.
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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.
X is a private company, there's no stock.
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For reference, he bought it for $44B.
https://wikipedia.org/wiki/Acquisition_of_Twitter_by_Elon_Musk
YAAASSSS!! I love to think of him losing money without money his influence plummets
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The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt)
Lol, he actually think the value of Shitter is still $45B, as when he bought it. That's cute.
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The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt)
Lol, he actually think the value of Shitter is still $45B, as when he bought it. That's cute.
If I recall, fidelity wrote off most of its investment in twitter less than a year after the acquisition: https://www.forbes.com/sites/tylerroush/2024/09/30/elon-musks-x-is-now-worth-around-a-fifth-of-the-44-billion-he-paid-for-it-fidelity-says/
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The whole point of buying Twitter was to take it private. IPO for xAI would hilariously undo that.
The point was to win an election.
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So what is he planning on doing? Make the worlds most corrupt porn Ai service?
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Coincidence? I think not!
Omg I just realized 88 is also how old his melting body looks.
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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.
I've always pronounced it gzitter
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So what is he planning on doing? Make the worlds most corrupt porn Ai service?
