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"The bid is being backed by Musk's AI company xAI, which could merge with OpenAI following a deal, according to the Wall Street Journal which first reported Mus

"The bid is being backed by Musk's AI company xAI, which could merge with OpenAI following a deal, according to the Wall Street Journal which first reported Musk's offer earlier on Monday." xAI is not making any money - it's a money furnace, so what does it mean the bid is backed by xAI ? The leverage and 'creativity' in the US is off the charts. Dotcom bubble starts to look reasonable.

bilbo0s 2y ago
This is an underrated comment. And the key point in this news that punctuates the ridiculous farce that is the nature of this offer.
rozap 2y ago
If they merge two money furnaces, then they can make up for the losses with the higher volume :)
- JKCalhoun 2y ago
  I guess just like First CityWide Change Bank.
- berbec 2y ago
  I they cut costs enough, they can make money without selling a product.
- adharmad 2y ago
  Indeed. When two black hole merge, the resulting blackhole has larger mass and size.
notatoad 2y ago
as i underestand it, xAI is essentially Elon's personal piggybank, and how he funnels money from his other companies back to himself. Tesla is public and Twitter is co-owned by a whole bunch of other billionaires, but xAI is just Elon.
- manquer 2y ago
  Twitter owns some shares in xAI . This has made the value of twitter debt improve from 55-60 cents to as high as 90 cents on the dollar according to some reports. While other factors may be involved, that debt is shopped around assuming there are bankable assets in that DC and GPUs which are quite valuable even if the either company goes sideways.
golergka 2y ago
> Dotcom bubble starts to look reasonable. Given what happened to the internet afterwards, dotcom bubble was always reasonable. There were a lot of idiotic companies that made no sense, but the overall idea that internet is going to generate tons of value and money was completely true.
reportgunner 2y ago
xAI is not making any money This is normal at this point. Netflix also wasnt making any money when it was new, same with Uber and more. You can't run in the race to the bottom if you're climbing to the top.
- stogot 2y ago
  That’s called Survivor bias

bilbo0s 2y ago

This is an underrated comment. And the key point in this news that punctuates the ridiculous farce that is the nature of this offer.

rozap 2y ago

If they merge two money furnaces, then they can make up for the losses with the higher volume :)

JKCalhoun 2y ago
I guess just like First CityWide Change Bank.
berbec 2y ago
I they cut costs enough, they can make money without selling a product.
adharmad 2y ago
Indeed. When two black hole merge, the resulting blackhole has larger mass and size.

notatoad 2y ago

as i underestand it, xAI is essentially Elon's personal piggybank, and how he funnels money from his other companies back to himself. Tesla is public and Twitter is co-owned by a whole bunch of other billionaires, but xAI is just Elon.

manquer 2y ago
Twitter owns some shares in xAI . This has made the value of twitter debt improve from 55-60 cents to as high as 90 cents on the dollar according to some reports. While other factors may be involved, that debt is shopped around assuming there are bankable assets in that DC and GPUs which are quite valuable even if the either company goes sideways.

golergka 2y ago

> Dotcom bubble starts to look reasonable. Given what happened to the internet afterwards, dotcom bubble was always reasonable. There were a lot of idiotic companies that made no sense, but the overall idea that internet is going to generate tons of value and money was completely true.

reportgunner 2y ago

xAI is not making any money This is normal at this point. Netflix also wasnt making any money when it was new, same with Uber and more. You can't run in the race to the bottom if you're climbing to the top.

stogot 2y ago
That’s called Survivor bias