> xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent.
Wow
xAI has acquired X, xAI now valued at $80B
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Re: xAI has acquired X, xAI now valued at $80B
#322> xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent.
Our job as humans is to train his AI models until we can no longer justify our existence.
Re: xAI has acquired X, xAI now valued at $80B
#323Earlier quoted context omitted.
"strongest AI models in existence" [citation needed]
See the leaderboard tab here: https://lmarena.ai . Or just try it. It's excellent. Usage is free of charge so far. Subjectively, on my prompts, it seems substantially stronger than GPT 4o and 4.5. I also like its more "informal" tone, and its willingness to discuss the more controversial topics.
I think it’s important to not support products by people who want to destroy democracy and who openly sieg heiling or claiming Hitler wasn’t responsible for the Holocaust.
Re: xAI has acquired X, xAI now valued at $80B
#324Earlier quoted context omitted.
An acquisition is a special case (for the company being acquired) and the scrutiny is somewhat higher. At least in Delaware. I have no idea what corporate law is like in Texas.
No X shareholder in their right mind will object to getting a $45 billion valuation (including debt) when their latest valuations have the company at <$10 billion.
Twitter still has a lot of users and if they stopped being used by offensive at times racist and awful, then Twitter could get more users, sell advertising and make money probably. Now that's all gone because Twitter could investors need w own a small piece of the giant over inflated Xai, which has value because of AI hype but it's future actual value is questionable. There are so many other AI companies, so what is it that xai can do that justifies an $80 billion valuation?
Re: xAI has acquired X, xAI now valued at $80B
#325So he just sold himself a company he already owns for a valuation that he himself assigned to that company but that was less than what he paid for it, and he paid entirely using “money” that has a made up value and which he issues himself? Wild.
And then will leverage against that valuation for loans, acquisitions, etc. Self dealing. Nobody cares anymore.
It's all private capital. The only people who are exposed to this deal are the banks who make loans to Musk and Twitter, and the investors who put capital in to take Twitter private or to invest in xAI. If one of those entities is mad they will sue, and the legal system works pretty well for fights between different capital holders. Doesn't really matter what the general public's opinion is.
Re: xAI has acquired X, xAI now valued at $80B
#326Earlier quoted context omitted.
You’re burying the lede here, which is that the Delaware Chancery Court rules that Tesla had paid a fair price for Solar City: https://www.businessinsider.com/elon-musk-wins-solarcity-tes...
OP mentions the lawsuits did not succeed Its not like the courts are investment banks with an evaluation arm. They are just judging if anything reaches the point where shareholders were legally harmed, which still gives a lot of gray area to the acquiring company.
Lawsuits can fail for lots of reasons without a decision on the merits. It seems relevant that the reason the lawsuit failed is because the court looked at the fairness of the transaction and determined that Tesla paid a fair price.
Re: xAI has acquired X, xAI now valued at $80B
#327He 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…
Tesla bought Solar City for $2.6 billion, and now it looks like the Tesla Energy division had about that much in net income last year alone.
So what, Tesla energy is a separate division? Tesla solar products are basically dying in the solar roof failed. It's a great idea, who wouldn't want to buy it if it lasted and was practical.
Re: xAI has acquired X, xAI now valued at $80B
#328Now it is under xAI, could X be rebranded into Twitter again please.
Re: xAI has acquired X, xAI now valued at $80B
#329So he just sold himself a company he already owns for a valuation that he himself assigned to that company but that was less than what he paid for it, and he paid entirely using “money” that has a made up value and which he issues himself? Wild.
But all the armchair business experts assured me that the value of Twitter had completely tanked since Elon bought it because he’s such a stupid fool who ruins everything, so shouldn’t it be worth less? Just a few months ago everyone was confident it was only worth $8 billion.
He valued it at the same price minus debt.
Re: xAI has acquired X, xAI now valued at $80B
#330As a reminder, the people who held X's debt had written down the company's value to less than $10 billion. So selling your company to yourself for $45 billion dollars is hilarious chicanery. Musk used his extremely overvalued company to bail out his other way overvalued company that he ran into the ground. It's a thinly-veiled, self dealing ponzi scheme. (It also echos the final fate of Solar City).
Another interesting bit of finance is X's last earnings were quite good but if you looked at what the sales consisted of I think about $500m was XAi paying to advertise/have Grok on X which seemed a bit iffy.