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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

#191

Post by bhouston »

danpalmer wrote: post #180
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…

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...

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

#193

Post by fzzzy »

saltysalt wrote: post #147
SV_BubbleTime wrote: post #134

Earlier quoted context omitted.

As opposed to Reddit? Or your Gmail? Or everything else on the internet?

I take your point, however an AI company owning a social media platform is new.

Not really, Facebook (Meta, whatever) has been an ai company for a long time.

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

#195

Post by ilrwbwrkhv »

saaaaaam wrote: post #48

So 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.

What an absolute scammer lol.

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

#196

Post by mandeepj »

redox99 wrote: post #167
thanhhaimai wrote: post #136

This move makes it more likely that the internal number for TSLA is not good, and Elon is expecting the price to go down. He has access to the real revenue number. If it's going well, he wouldn't have to perform this maneuver. xAI was relatively separated from X and TSLA, and wasn't having the backlashes associated with the two. Now he risks having the xAI branding tarnished too. He wouldn't do this unless the TSLA i…

I don't understand the relation with TSLA.

There's a margin on TSLA stock at $112 or $115; Like some other commentator said as well - he collateralled TSLA stock to take a loan to buy Twitter.

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

#197

Post by llm_nerd »

CursedSilicon wrote: post #130
ein0p wrote: post #108

Earlier quoted context omitted.

More likely Musk liked xAI's CTO more than X's CTO, and parted ways with one of them. Which is his prerogative, as the owner of both companies. I'm sure Haofei would love to be the CTO of one of the strongest AI models in existence. I would, if I were in his shoes.

"strongest AI models in existence" [citation needed]

To be fair they said one of the strongest models.

We're at the point now where any heavily monetized player can build one of the strongest models. I mean, especially with all of the incredibly open Chinese companies releasing cutting edge research now that most American firms have gone quiet or only releasing their tailings.

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

#198

Post by TheAlchemist »

zozbot234 wrote: post #143
qwertox wrote: post #72

I wonder if Tesla will buy xAI. Doesn't Tesla need the GPU power of xAI? Are they renting it, or do they have their own servers?

Doesn't Tesla have their own "Dojo" custom AI chips? There seems to be a bit of pointless duplication either way between Tesla and X/xAI's developments in this space.

Tesla Dojo ? We're getting close to FSD on that - it was announced in 2019.

Here is a chart from Tesla AI, 2 years ago: https://x.com/Tesla_AI/status/1671589874686730270

Judge by yourself where it's now.

Folks, it's all smokes and mirrors !

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

#199

Post by minwcnt5 »

saaaaaam wrote: post #48

So 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.

This also lets all of his co-investors in X, who were likely pissed that their shares tanked, exchange their shares at an inflated value (but one that still sees them losing 25% of their original investment) for shares in a trendy yet likely overvalued AI company that they consider to have more upside.

The other part of this is that if TSLA stock drops to $100-ish he'll be at risk of being margin called on the loans he took against his holdings to buy X. I wouldn't be surprised if this deal involves some X shares being sold for cash (that was raised from VCs) to pay down those loans, and/or the lenders agreeing to take xAI stock in lieu of cash.

This whole thing seems like a big pyramid scheme. I don't think this is the last time we've seen this type of move: he'll keep starting companies that are at the forefront of whatever the current hype cycle is, then leverage the extremely inflated valuations to benefit himself.

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