4 ms·
Did they raise 6B or at 6B valuation?
by ergocoder 2y ago
Did they raise 6B or at 6B valuation?
- deleted 2y ago[deleted]
- upon_drumhead 2y agoRaised 6B, with something like a 18-24B valuation[1] [1]https://www.bloomberg.com/news/articles/2024-05-23/musk-s-xai-nears-close-of-deal-valuing-startup-at-24-billion https://www.bloomberg.com/news/articles/2024-05-23/musk-s-xa...
- aimazon 2y agoconsidering the names involved and why the money is needed, almost certainly $6bn raised
- danpalmer 2y agoI would bet money that this is not $6bn in cash that has been raised. It sounds like it is the raise at a $24bn valuation, but I'd bet this is less cash and more varied assets or financial instruments. Whether it's calling Teslas cheap when accounting for your time spent filling up, taking on significant debt rather than selling company shares as Tesla/SpaceX, or leveraging his personal shares for debt, Musk is always pulling some trick to reach numbers like this. That's not to say these sorts of things aren't common among the ultra-rich, but I get the impression Musk does it at every opportunity. All this to say that I don't think $6bn in cash changed hands for this, I'd expect there's credit lines secured on Musk's own valuation of the company, possibly service credits from compute providers (this can even be via VCs), or other clever tricks to inflate it.