Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

twitter.com

Post reply on HN
Print view View original

891–900 of 1001 posts

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

#891

Post by [deleted] »

WalterBright wrote: post #886
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 only way to determine fair market value is by having a free market sale. For example, I had a run-in with the property tax assessor. He assessed my house at an unreasonably high price. I filed a protest, and then had a conversation with him. I offered to sell him the house at a considerably lower price, and he could then flip it for what he assessed it at. He refused. I eventually did sell it, for considerably le…

[deleted]

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

#892

Post by javier2 »

giorgioz wrote: post #879
javier2 wrote: post #783

Earlier quoted context omitted.

And unfortunately, AI companies like xAI are relatively cheap to keep running, so it could take a while before it goes bankrupt.

How AI companies relatively cheap to keep running? Aren't they well known to spend a lot in GPUs for training? I always saw AI companies as actually quite relative expensive companies to keep running.

They are still cheap compared to building and supporting cars, space rockets and moderating social media and maintaining a ad delivery network.

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

#893

Post by electriclove »

rideontime wrote: post #842
electriclove wrote: post #791

Earlier quoted context omitted.

No source, just speculation. I think my main point is that these aren’t regular people that we need to feel sorry for or rise up in arms to defend.

You can be against fraud in general without feeling sympathy for the particular victims. I know I am.

Why assume fraud?

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

#894

Post by javier2 »

zitterbewegung wrote: post #21
adharmad wrote: post #9

What is the play here? Using money invested in xAI and its inflated valuation to bail out the X investors?

That and the data that is a part of X can be used by the xAI team. I expect it will be in the TOS if it isn't there already. "xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent."

I suppose xAI could already use the data from X, but anyway. X is a cesspool of vile hate and bots. Why would you want to train a AI on that?

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

#895

Post by IncreasePosts »

Hasnep wrote: post #396
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…

> more likely that the internal number for TSLA is not good The external number for TSLA is not doing very good either

To put it in perspective, over the past 6 months TSLA has performed as well as META and much better than GOOG and MSFT.

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

#896

Post by pavlov »

askonomm wrote: post #885

Is it weird that if I do not have an account on X, I also have no idea what X actually is? If I go to the home page, it just says "Happening now". No idea what that means though. If I then navigate to the tiny "About" link, I'm not getting any smarter. The "About the company" page takes to a 404. So, unless you know already what X is, you have no obvious way to find out what it is either.

Today it’s primarily porn site where you can also discuss sports and post Nazi memes while getting flooded with crypto scams.

There’s also a dwindling number of Silicon Valley influencers who still maintain the old pretense that it’s a globally important news forum and a place for serious people to interact. They’re an island in a rising sea of shit.

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

#897

Post by yfontana »

nout wrote: post #482
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.

All money is made up. The banks literally "lend" money into existence without having it backed by anything, the banks don't need to have the money in the first place, the bank reserve requirement has been dropped to 0% in 2020.

This is inaccurate. Reserve requirements are not the only cost that banks have to pay for the money they create. If bank A lends $20B, and the borrower spends it to buy something from someone with an account at bank B, bank B isn't going to accept $20B of "made-up" bank A money, it'll want $20B of central bank money from bank A. If bank A doesn't have that that $20B of central bank money, it'll have to borrow it from the central bank, at the cost of the reserve interest rate. Being able to transfer central bank money to bank B is essentially what backs the money that bank A created.

(in reality some of that $20B would probably make it back to bank A as money circulates, so the actual amount of reserve money that banks have to borrow depends on more complicated factors. This also doesn't talk about what happens if the borrower defaults. But the fundamental principle remains the same, and is what ultimately limits how much money a bank can lend).

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

#898

Post by ty6853 »

BobAliceInATree wrote: post #887
rayiner wrote: post #855

Earlier quoted context omitted.

You can sell your house to a family member for $1. (There might be tax implications if you sell a $100,000 property for $1 to avoid gift tax limits or whatever, but that’s a separate issue.) I sold my car to my sister in law for $1. Self dealing is also permissible with companies. Corporate officers and directors must still meet their fiduciary duties to shareholders. And the potential for conflict of interest change…

This is why many states base the sales tax of used cars sales on the market value, not the actual sales price.

Sales tax was already paid when it was new, the state got its due. That kind of idiotic policy is how expensive and collector cars get owned under an LLC and the LLC changes hands rather than the title. Thus the rich bypass all that BS it's only for the gullible plebs.

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

#900

Post by Hasnep »

IncreasePosts wrote: post #895
Hasnep wrote: post #396

Earlier quoted context omitted.

> more likely that the internal number for TSLA is not good The external number for TSLA is not doing very good either

To put it in perspective, over the past 6 months TSLA has performed as well as META and much better than GOOG and MSFT.

That's true, and in the last two months it's done worse than all of those put together!
Post reply on HN