Summary
Elon Musk announced that his AI startup xAI has merged with his social media platform X in an all-stock deal, valuing xAI at $80 billion and X at $33 billion.
Musk stated the merger will combine AI expertise with X’s broad reach.
xAI, launched less than two years ago, competes with OpenAI and has developed the Grok chatbot, integrated with X.
why does this feel like a twitter bailout. so he gets to shuffle the financial deck of these 2 so twitter isnt a complete failure monetarily?
yes, he uses the hype investor cash that poured into the ai boondogle to cover his insane twitter purchase and literally bail himself out of his stupidity
How do i do that with a mortgage?
You need another property. Work a shady deal with a bank to massively overvalue that property. Borrow against that equity.
“Well what do I do with an overvalued loan on my other property now?” I hear you ask. Simple! Have another another property. Work a shady deal to massively overvalue…
Gotcha. Ok, please recommend a shady bank that is interested in sketchiness at my level
axos bank apparently, but you got to know the shareholders.
That depends, do you have the “rich” status condition?
I have not yet unlocked that perk
Keep tuggin on them bootstraps and you’ll get there eventually
Have the most money in the world.
I don’t think I need a mortgage at that point
Now you get it.
It’s not a xhitter bailout. It’s a robbery of shareholder investment.
If he wants to use xhitter content for grok, that’s gonna be most fucked up LLM of all.
It’s gonna make Bender look like a commie saint
Hmm…
Manipulating stocks between companies you own for fun and profit…
Sounds pretty Ferengi to me.
And no accountings shall be held…
🙄 🤡 🤦♀️ 🖕
Elon has violated securities laws blatantly for years now. Yeah, he won’t be held accountable. And a good half of people still wonder why inequality is such a bad thing.
He essentially did the same thing with Solar City a decade ago. Although that was “owned” by his cousins and he bailed them out with by buying it for a few billion.
Bimbo AG Blondie: looks good to me! Nothing illegal.
Two companies no one wanted now one company no one wants.
Company worthless? Sell it to yourself for a ludicrous cost to increase your market value!
You mad, wage slaves?
Then immediately borrow real money against the paper value of your new merger company. Pocket a few billion and use some to bribe the feds to not audit you.
It’s crime all the way down.
No need for a bribe. Just fire all the financial investigators.
Market cap of Twitter was $41B, Musk overpaid at $44B,
Fidelity valued it at $9.4B late last year.
xAI paid $33B for it this year.
So this is a significantly worse overpay.
This is just his left hand paying his right so he can claim Twitter’s value is comparable to what he initally paid for it. He’s getting fixated on people talking about his losses again, and is getting ready to call someone a pedo on main again.
It’s all to defraud investors. The SEC isn’t going to touch him, and when the earnings report for Tesla is due I bet it’s going to show that the woke libtards were wrong and Tesla sales actually quadrupled in the past 4 months.
Musk overpaid at $44B,
Yes, but about $14 billion was financed by debt rather than shares of stock, so the market cap immediately dropped to $30B as a result (enterprise value is market cap + outstanding debt because in a liquidation the debt would be paid out of the assets before the shareholders get anything). So in a sense, the current shares were worth about $30B at the time of the 2022 transaction.
If this new merger is a private transaction that values X at $33B and xAI at $80B, and everyone agrees, it’s functionally the same as if it were worth $3.3B and $8B.
It went up after the election. Last valuation was back to $44B. It not about Twtter’s valuation, it’s about Tesla stock price. I don’t understand the scam but I’m pretty sure he had to refinance his loan somehow because Tesla stock dropped.
valuing xAI at $80 billion and X at $33 billion
I was also today years old when I read a headline about DOGE heading into the SEC.
Weird.
Neither of those valuations are supported by reality.
How is this even legal. Fuck
“I will make it legal…”
—Senator Palpatine
Because DOGE controls the SEC.
This is blatant, naked plutocratic klepocracy.
Because money.
oh cool, I just bought my own student loans and it says here that the federal government now owes me triple back what I’ve paid plus interest, isn’t that something?!
Honestly wasn’t sure if they were talking about one of his children when they said xAI
Pronounced ‘barbara’
I hope I make it out alive of the scam economy. This mother sucker gets away with murder and I have dodge scammers left and right bcz there is no justice or rule of law.
The other day i said something along the lines of the economy having a valuation problem and i was assured that that’s inaccurate and only the stock market has a valuation problem. So the economy is fine.
/s
This is just oligarchs moving their chess pieces around. Expect nothing to come of it. Expect elon to face zero consequences.
It shouldn’t be hard. If you accept the existence of billionaires you accept that some people shouldn’t ever face consequences and be rewarded for toxic behavior.
There are supposed to be consequences?
Don’t interrupt when they’re up on their soapbox
So… fraud.
Musk stated the merger will combine AI expertise with X’s broad reach.
Ah yes, the famous combining two losing strategies, so they can lose money twice as efficiently.
This reminds me of when Kmart bought Sears.
At least neither Kmart nor Sears were Nazi hangouts.
Well, Sears went under because the CEO was a True Believer in the Libertarian/Atlas Shrugged/Starve The Beast method of running a business. He genuinely thought that making stores and even individual departments fight for ever reducing funding was going to make them better. What he learned is that when people have their livelihood at stake, they fight dirty and lie.
When Sears finally closed forever, he said he regretted it. Probably not as much as the people whose lives he ruined.
I used to think it was a straight market manipulation to short the market, coupled with a crypto scam.
Here’s my latest prediction for the next step: as well as being a geopolitical tool, I think they plan to use Trump’s tariffs as a way to funnel more tax revenue into US Government to be directly laundered for themselves personally. The reduced order volume doesn’t matter to them because 25%, 50%, 100% or whatever tariff they charge goods and services will go straight to the US government to be compliantly fed into Musk’s ever-expanding business interests via government contracts. Some of those in the loop get vested stock options and get to run away with exponentially more money than they would without tariffs. Musk has already paid his dues so probably thinks they owe him.
They already tried to alter an agreement for 480,000 contract to Tesla for armed cybertrucks to be 480,000,000 and backdated it to look like it was agreed by Biden last year.
I expect to see a multi-billion AI contract awarded solely to xAI in the near future.
