Elon Musk sells X to his own xAI for $33 billion in all-stock deal

Comments

• Sirdubdee@lemmy.world ⁨1⁩ ⁨month⁩ 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.

  source

  • Steve@startrek.website ⁨1⁩ ⁨month⁩ ago

    Plus the $11B loss that he gets to deduct…

    source

    • squishy@lemmy.zip ⁨1⁩ ⁨month⁩ ago

      It’s a private company, he can’t.

      source
• DogPeePoo@lemm.ee ⁨1⁩ ⁨month⁩ ago

  It’s equivalent to plugging a surge protector into itself. eNdlEsS pOweR!!!

  source

  • sndmn@lemmy.ca ⁨1⁩ ⁨month⁩ ago

    Except for the fraud part.

    source

    • DogPeePoo@lemm.ee ⁨1⁩ ⁨month⁩ ago

      It’s astonishingly ludicrous what these assholes get away with.

      source

      • -> View More Comments
• IllNess@infosec.pub ⁨1⁩ ⁨month⁩ ago

  This is probably just to get around any data privacy laws left intact.

  source
• sittinonatoilet@sopuli.xyz ⁨1⁩ ⁨month⁩ ago

  He’s broke lmao

  source

  • simplejack@lemmy.world ⁨1⁩ ⁨month⁩ ago

    Trust me, he’s not. He’s just trying to amass more wealth.

    source

    • sittinonatoilet@sopuli.xyz ⁨1⁩ ⁨month⁩ ago

      Ok I’ll trust you

      source
  • stardustsystem@lemmy.world ⁨1⁩ ⁨month⁩ ago

    Keep the pressure on him. I wanna buy The Boring Company for $6 and a Hot Topic gift card

    source

    • Dindonmasker@sh.itjust.works ⁨1⁩ ⁨month⁩ 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

      source
    • CarbonatedPastaSauce@lemmy.world ⁨1⁩ ⁨month⁩ ago

      Why the hell do you have a Hot Topic gift card?

      source

      • -> View More Comments
• humanspiral@lemmy.ca ⁨1⁩ ⁨month⁩ 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.

  source

  • humanspiral@lemmy.ca ⁨1⁩ ⁨month⁩ 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.

    source
• Pudutr0n@feddit.cl ⁨1⁩ ⁨month⁩ ago

  play stupid games, win stupid prizes.

  source
• stucljr@lemmy.world ⁨1⁩ ⁨month⁩ ago

  That’s insane amount of money

  source