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 10 months ago by Redditsux@lemmy.world [bot] to technology@lemmy.world
https://apnews.com/article/x-musk-sale-xai-b245f463076ac9b72c41f92160dc77eb
Comments
DogPeePoo@lemm.ee 10 months ago
sndmn@lemmy.ca 10 months ago
Except for the fraud part.
DogPeePoo@lemm.ee 10 months ago
It’s astonishingly ludicrous what these assholes get away with.
IllNess@infosec.pub 10 months ago
This is probably just to get around any data privacy laws left intact.
sittinonatoilet@sopuli.xyz 10 months ago
He’s broke lmao
simplejack@lemmy.world 10 months ago
Trust me, he’s not. He’s just trying to amass more wealth.
sittinonatoilet@sopuli.xyz 10 months ago
Ok I’ll trust you
stardustsystem@lemmy.world 10 months ago
Keep the pressure on him. I wanna buy The Boring Company for $6 and a Hot Topic gift card
Dindonmasker@sh.itjust.works 10 months 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 10 months ago
Why the hell do you have a Hot Topic gift card?
humanspiral@lemmy.ca 10 months 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 10 months 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 10 months ago
play stupid games, win stupid prizes.
stucljr@lemmy.world 10 months ago
That’s insane amount of money
Sirdubdee@lemmy.world 10 months 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 10 months ago
Plus the $11B loss that he gets to deduct…
squishy@lemmy.zip 10 months ago
It’s a private company, he can’t.