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What is the play here? Using money invested in xAI and its inflated valuation to bail out the X investors?
by adharmad 1y ago
What is the play here? Using money invested in xAI and its inflated valuation to bail out the X investors?
- ajaimk 1y agoYes. He did it with Solarcity already.
- dashundchen 1y agoSolar roofs was one of many scams. And he scammed the taxpayers of New York State for a billion dollar factory to build solar roofs. Factory built, stock was pumped, no solar roofs though. The puffery about waste and fraud is pure projection coming from a scammer like Musk.
- whynotminot 1y agoI forgot all about the solar roof thing. In concept seems like a really interesting idea. I guess it never ended up working out.
- paul7986 1y agoWho also talks like Sam Altman that the human race will need to all be on welfare (Universal Basic Income) because of AI. I don't understand it all ...cut people's jobs who make multitudes of billions less (cut 25k probationary employees like ripping off a band-aid), want people to work like the Chinese do (day and night) so we are the leader in AI (?) and after AI starts replacing jobs we all need to be on a welfare system. Isn't a welfare system the biggest waste to the Republican party (independent here)? Does he even know his end game with all this or he's just having fun be the most powerful person?
- poniko 1y agoYes same setup as when Tesla bought Solar city .. one playbook he pours out of.
- toomuchtodo 1y agoIt bails out Elon and means his Tesla shares (borrowed against to purchase Twitter) won’t be liquidated as Tesla’s share price continues to decline, using xAI investor funds. He uses hype and sentiment (inflating valuations) in the capital markets to always stay slightly ahead of consequences.
- rayiner 1y agoTesla shares are higher now than they were when he closed on Twitter in October 2022.
- TMWNN 1y agoHeck, TSLA today is higher than on 5 November 2024, less than five months ago!
- timeon 1y agoIt is almost the same price.
- deleted 1y ago[deleted]
- tedunangst 1y agoBut lower than on 6 November 2024, less than five months ago.
- dmix 1y agoIt's up 49% YOY https://www.google.com/finance/quote/TSLA:NASDAQ?window=1Y https://www.google.com/finance/quote/TSLA:NASDAQ?window=1Y This is a bit of a silly game, their stock is very meme-y so whenever you set the start of the time range the aggregate % can vary heavily.
- henry2023 1y agoAnd it's ~40% lower since the "roman" salute day. Anyone can pick random dates.
- zitterbewegung 1y agoThat and the data that is a part of X can be used by the xAI team. I expect it will be in the TOS if it isn't there already. "xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent."
- sunaookami 1y agoThere is a setting (opt-out outside of EU, opt-in inside EU I think) that allows/forbids data sharing with X since Grok was released.
- phillipcarter 1y agoOh yes, you can definitely be reassured that Elon and his openai dropouts working at xAI will follow that one to the tee.
- jsheard 1y agoWeren't they already doing that? I recall before I bailed from X/Twitter they already added an AI training consent toggle, which silently defaulted to "I consent" for all existing users of course.
- palmotea 1y ago> I recall before I bailed from X/Twitter they already added an AI training consent toggle, which silently defaulted to "I consent" for all existing users of course. There's a solution for that: build a Twitter bot that posts strange things.
- jsheard 1y agoAre the porn bots still around? Maybe they were the heroes we needed after all.
- spiderfarmer 1y agoI think any LLM that’s not trained on X data comes out ahead.
- HappySweeney 1y agoTo me it appears to be a way to pay his lenders without liquidating or collateralizing more Tesla stock.
- blueelephanttea 1y agoSo he can use the funds he raised for xAI to pay out the lenders for the initial Twitter purchase? Otherwise the lenders are just getting xAI stock (all stock deal) which I assume is illiquid?
- gscott 1y agoA stock ponzi scheme to keep him afloat? Soon he will start a new venture and use that venture to save the previous venture and so on. Maybe a robot clothing company because robots shouldn't be naked.
- bradleyjg 1y agoThe debt goes to the merged company and so can be serviced or retired using the funds of the whole company.
- deleted 1y ago[deleted]
- russdill 1y agoSeems like anyone who has three "shares" of X now has 1 share of xAI+X, which by Musk's valuation is three times as valuable as X. Assuming the xAI share price is wildly inflated, it seems that the inflated valuation has devalued their actual holdings. Eg, for an extreme example, if xAI is worth zero, their actual holdings are now a third of what they were.
- deleted 1y ago[deleted]
- VirusNewbie 1y agoMakes recruiting easier, better for the X employees as well.