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xAI has acquired X, xAI now valued at $80B

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Re: xAI has acquired X, xAI now valued at $80B

#311

Post by saltysalt »

maxlin wrote: post #300
saltysalt wrote: post #118

X users are now officially just training data for Grok.

With that logic Github, StackOverflow, rest of internet is also "only" training data. X just produces extra valuable training data as a byproduct. Like power plants create certain byproducts that can be sold etc. Good to see it going to Grok primarily, as other LLM's are far from being truth seeking with their built-in, documented, extreme bias.

None of the companies you mentioned are owned by a private AI company, except X.

I can't think of any other example of an AI company owning it's own social network, it's a fresh precedent.

Re: xAI has acquired X, xAI now valued at $80B

#313

Post by brians »

eightysixfour wrote: post #283
mingus88 wrote: post #87

Earlier quoted context omitted.

Yeah these fantasies where musk would somehow go bankrupt by tanking Tesla and overpaying for Twitter were also wild He’s literally the richest person the earth has ever known. He’s never going to suffer financially. He has countless levers of power he can pull. The same fantasy applies to any past or current president ever spending a day in jail. He literally commands the most powerful military apparatus the world h…

> He’s literally the richest person the earth has ever known This is arguable in real terms.

Yeah. He’s not even the richest African emmigrant… because Mansa Musa tipped so heavily he broke intercontinental trade dynamics.

Re: xAI has acquired X, xAI now valued at $80B

#314

Post by russdill »

TheAlchemist wrote: post #89
minimaxir wrote: post #3

The SEC would likely have a field day with this, if there was still a functional SEC.

Interestingly enough, I see a headline, pretty much in the same minute Musk tweeted about the deal: U.S. JUDGE REJECTS ELON MUSK'S BID TO DISMISS LAWSUIT ALLEGING HE DEFRAUDED TWITTER SHAREHOLDERS BY WAITING TOO LONG TO REVEAL STAKE What's going on ?? Because he very obviously is guilty of this. Here is the article - I get a feeling that this is very much related: https://www.reuters.com/legal/elon-musk-must-face-fra…

It's either that or an East Texas judge.

Re: xAI has acquired X, xAI now valued at $80B

#315

Post by whats_a_quasar »

zozbot234 wrote: post #126
mingus88 wrote: post #87

Earlier quoted context omitted.

Yeah these fantasies where musk would somehow go bankrupt by tanking Tesla and overpaying for Twitter were also wild He’s literally the richest person the earth has ever known. He’s never going to suffer financially. He has countless levers of power he can pull. The same fantasy applies to any past or current president ever spending a day in jail. He literally commands the most powerful military apparatus the world h…

That military apparatus is sworn to uphold the Constitution, not support the current president.

The commenter also included past presidents, which is silly. Once a president is a past president, he no longer controls that military apparatus.

Re: xAI has acquired X, xAI now valued at $80B

#316

Post by no_wizard »

whats_a_quasar wrote: post #272
TheAlchemist wrote: post #253

Earlier quoted context omitted.

Just keep in mind this is all funny money ! The valuation of those 2 companies combined should be X is heavily in debt, diminishing user base, and bleeding money. 0 profits xAI is yet to make any actual revenues outside of ... X. Also bleeding money Although I would admit, that these companies are not valued based by their economics, but rather on political power they provide to the owner.

As best I can tell the deal includes paying off $12 billion of Twitter debt. So that's real money, though that seems like it's basically all of the cash that xAI has raised, so if that's the case that's pretty wild. Edit: I misread, Musk said it's an all-stock deal, so you're right, it's all funny money. I think that means the combined entity is taking on that debt. It's still great for Twitter and bad for xAI invest…

Every time I see deals like this that are going to be such raw deals for the majority of those who invested it feels like a keen reminder that all the talk of market efficiency the pro caps in Washington talk about are full of it

This is a terrible and inefficient use of money. It’s inevitable that this paper house will fall over

Re: xAI has acquired X, xAI now valued at $80B

#317

Post by michaelwilson »

whats_a_quasar wrote: post #250
bhouston wrote: post #29

He has done this move before with Tesla buying Solar City. When you do a deal with yourself you can assign any value you want to assets, it isn’t a competitive process. In the previous case Solar City was dying but its acquisition by Tesla was pitched as a great synergy. https://www.businessinsider.com/solarcity-tesla-energy-belea... There were a few lawsuits from Tesla shareholders about the acquisition regarding se…

The solar city acquisition was for "only" $2.6 billion. This deal is way bigger. I'm not sure what the Tesla valuation was at the time of that deal, but I have to imagine it's proportionally way bigger too. A $45 billion acquisition when the acquirer, xAI, has an $80 billion valuation will threaten the integrity of xAI. Particularly because that's just a paper valuation and xAI doesn't have much of any revenue. If I…

Wait, wasn't there a "sweetener" for recent X debt buyers that they'd get XAI stock?

The levels of .. self-fertilizing transactions here boggles the mind. I guess that's the idea.

Re: xAI has acquired X, xAI now valued at $80B

#318

Post by KerrAvon »

mandeepj wrote: post #207
mingus88 wrote: post #87

Earlier quoted context omitted.

Yeah these fantasies where musk would somehow go bankrupt by tanking Tesla and overpaying for Twitter were also wild He’s literally the richest person the earth has ever known. He’s never going to suffer financially. He has countless levers of power he can pull. The same fantasy applies to any past or current president ever spending a day in jail. He literally commands the most powerful military apparatus the world h…

> Even a sliver of that capability and influence ensures nobody will ever dare to try and slap some cuffs on him After 2028 elections, all of that umbrella cover will go away. Optimistically speaking it could happen as soon as after Nov of 2026 (midterms).

On what basis do you think 2028 elections will be free and fair? Congress is going to try to mass-disenfranchise women before the 2026 midterms. They've stated this on the record. Dems aren't going to gain control of congress in the upcoming special elections. We're totally fucked economically and otherwise unless Democrats in congress -- mainly the Senate -- can get a fucking grip, pay attention to what's happening, and be the opposition party we need.

Re: xAI has acquired X, xAI now valued at $80B

#319

Post by tim333 »

basisword wrote: post #263

So he bought Twitter for $44bn 2.5 years ago and has run it so badly that even when his own company bails it out using made up figures the best he can do is $33bn. Embarrassing. It's not much more than a pyramid scheme.

The 44bn was paid approx with 32bn equity, 12bn debt, so it's about break even.

Re: xAI has acquired X, xAI now valued at $80B

#320

Post by ksec »

bhouston wrote: post #191
danpalmer wrote: post #180

Earlier quoted context omitted.

I don’t want to downplay your point, I basically agree, but in real terms I believe there have been several people richer than him, and it is hard to judge the relative wealth of people long ago.

Elon was uniquely rich is US history but his wealthy fluctuates wildly: https://finance.yahoo.com/news/rockefeller-rich-elon-musks-w...

I don't like this market cap against GDP measurement. The multiples in Market Cap in those era would be significantly lower. If we look at P/E of S&P 500 [1], what used to be peak PE of 20 a century ago are now considered normal.

So adjusting for all that Rockefeller would still be richer than Elon.

[1] https://www.multpl.com/s-p-500-pe-ratio

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