It’s equivalent to plugging a surge protector into itself. eNdlEsS pOweR!!!
Elon Musk sells X to his own xAI for $33 billion in all-stock deal
Submitted 1 week ago by Redditsux@lemmy.world [bot] to technology@lemmy.world
https://apnews.com/article/x-musk-sale-xai-b245f463076ac9b72c41f92160dc77eb
Comments
DogPeePoo@lemm.ee 1 week ago
sndmn@lemmy.ca 1 week ago
Except for the fraud part.
DogPeePoo@lemm.ee 1 week ago
It’s astonishingly ludicrous what these assholes get away with.
IllNess@infosec.pub 1 week ago
This is probably just to get around any data privacy laws left intact.
sittinonatoilet@sopuli.xyz 1 week ago
He’s broke lmao
simplejack@lemmy.world 1 week ago
Trust me, he’s not. He’s just trying to amass more wealth.
sittinonatoilet@sopuli.xyz 1 week ago
Ok I’ll trust you
stardustsystem@lemmy.world 1 week ago
Keep the pressure on him. I wanna buy The Boring Company for $6 and a Hot Topic gift card
Dindonmasker@sh.itjust.works 1 week ago
Careful with what you ask. You might get it for almost free but the debt that comes with it won’t be free. I’m pretty sure your comment can be used in court to bind you to the deal too XD
CarbonatedPastaSauce@lemmy.world 1 week ago
Why the hell do you have a Hot Topic gift card?
humanspiral@lemmy.ca 1 week ago
He said the deal values xAI at $80 billion and X at $33 billion.
Not sure Musiks ownership level in both. xAI being worth $80B is a stretch, in that it certainly doesn’t have profits or revenue to justify it, and has competition that could end in it being a loser. X value is also high though. Whether it is an unfair transaction depends on which is more overvalued. Transaction is same as if xAI were value $8B and X 3.3B.
humanspiral@lemmy.ca 6 days ago
follow up on this… xAI appears to have raised $18B in funding rounds. But November 2024 was at $50B, December 2024 was $40B. X’s ownership of xAI, caused its interest expense on high debt levels to rise to $1B/year (debt levels approaching close to $20B estimated)
It is a major stretch to value xAI higher than the $50B peak. Chinese open source models released have depressed overall US AI stocks, and xAI has major cash burn in implementing its model, and Musk has ever increasing brand hatred culminating in government persecution threats to anyone who could say something negative about him or his companies that becomes propaganda fuel for actual damage to his vehicles/dealerships.
Pudutr0n@feddit.cl 1 week ago
play stupid games, win stupid prizes.
stucljr@lemmy.world 6 days ago
That’s insane amount of money
Sirdubdee@lemmy.world 1 week ago
He traded a liability for an asset. Distanced X from his personal assets (Tesla stock) used as collateral. xAI now has massive amounts of debt and Elon just owns the company that owns it.
Steve@startrek.website 1 week ago
Plus the $11B loss that he gets to deduct…
squishy@lemmy.zip 6 days ago
It’s a private company, he can’t.