In similar news: my left hand acquired my right hand today in an all stock deal valuing the combined hands at $1T. Praising the announcement my arms noted on the deal: “With these two hands now together, there’s nothing our combined fist of might can’t do.” Competitors, my left and right feet, declined to comment on the merger but are said to be in their own separate talks about a deal.
xAI has acquired X, xAI now valued at $80B
301–310 of 1001 posts
Re: xAI has acquired X, xAI now valued at $80B
#302"... seeking the truth ..." Hahaha, ha ha, ha... Maybe more accurate to say "spreading my truth".
Summer child you don't really know how CN's work now do you
Re: xAI has acquired X, xAI now valued at $80B
#303A story about the most destructive man in the history of high technology (who is currently demolishing the future for most everyone on here) bilking his co-investors out of billions of dollars was allowed to stay up on Hacker News for two hours? Huh!
Re: xAI has acquired X, xAI now valued at $80B
#304Earlier quoted context omitted.
And then will leverage against that valuation for loans, acquisitions, etc. Self dealing. Nobody cares anymore.
Good luck trying to get a bank to underwrite that loan, smells a bit risky.
You realize the current administration is shutting down law firms that criticize Trump, right? They'll have zero problems going "do this deal if you know what's good for you".
Re: xAI has acquired X, xAI now valued at $80B
#305Earlier 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.
I’m guessing Tesla is paying xAI to train their FSD model?
That would be a shocking conflict of interest - a public company paying a private company, which is owned by the CEO of the public one ?
All while the same CEO claims that the public company is the leader in the field ?
Even by Tesla & Musk lawlessness standard that would be too wild.
Re: xAI has acquired X, xAI now valued at $80B
#306Earlier 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.
> I have no idea what corporate law is like in Texas. Nobody does, really. Texas is relatively new to its 'corporate registration friendly' game, and at least on paper the statutory law is the same. Texas courts don't have to follow Delaware's case history, but it's also not a given that they will rule in a vastly more owner-friendly manner.
To add on to this, Texas as part of this pitch is the promise of less oversight and they not following Delaware’s lead is a plus
Re: xAI has acquired X, xAI now valued at $80B
#307Happy to see xAI succeed and its fate being intertwined with X. Some paths to ultimate success for the greater good don't take the straightest ways
Re: xAI has acquired X, xAI now valued at $80B
#308Banger. Truly excellent trolling
Re: xAI has acquired X, xAI now valued at $80B
#309Earlier 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…
Definitely great for the Twitter investors to be able to convert. I think they took a haircut relative to the 42B that they came in on, as the 45B includes the 12B debt. (42 gets reduced to 33, so 21-22% haircut)
xAI also raised 6B in December last year at a 45B valuation, and then in February, reporting was that xAI was trying to raise 10B more at the 75B valuation... so this is where the frothiness of AI helps to mask the fundamentals. Can gets kicked down the road.
Re: xAI has acquired X, xAI now valued at $80B
#310What is the play here? Using money invested in xAI and its inflated valuation to bail out the X investors?
Seems like anyone who has three "shares" of X now has 1 share of xAI+X, which by Musk's valuation is three times as valuable as X. Assuming the xAI share price is wildly inflated, it seems that the inflated valuation has devalued their actual holdings.
Eg, for an extreme example, if xAI is worth zero, their actual holdings are now a third of what they were.