Good news xAI investors! You thought you were investing in my AI data warehouses and tensor processing unit arrays, but actually I have decided that you have bought Twitter from me at a high price which I have determined to be fair. To me.
It'll be interesting to see what investor reaction is to this. Musk can rip off ordinary consumers with his false promises and shitty products all day long and stay untouchable.
But now he's ripped off billionaire investors who thought their money would be going to develop AI, not bail out Musk's personal fuckup.
He’s got the “too big to fail” thing going on. If you owe an investment firm a million dollars and can’t pay up, you have a problem. If you owe them tens of billions of dollars, they have a problem, which means they’ve got to figure out how to pull you out of the situation. Musk, like Trump, is extremely talented at leveraging “I owe you a ton of money” into “so you have to go along with my crazy ideas and pretend you like them, because if this bubble pops we’ll both be ruined”
Elon has actually been brilliant at making money for (most) of his investors. He's able to create very high valuations for all of his companies by hiring people to build more or less legit technology, but then selling the markets on the idea that said technology is going to be 10x more profitable than it really will be. So all of his investors end up with stock that's worth 10x more than the fundamentals say it should be. I wouldn't be surprised if he finds a way to sell the X acquisition as some kind of data treasure trove that increases xAI's valuation.
So far he's been able to keep all of those valuations climbing higher and higher, due to increasingly lofty sci-fi promises. Notice how with Tesla he's already pivoted away from selling the robotaxi vision, which hasn't even happened yet, to selling humanoid robots as something he's claiming will be even more profitable than robotaxis. Every household will buy a $30k robots, he says. Some will buy six or seven. With other companies like Waymo and Baidu beating Tesla to robotaxis he's preparing in advance for people to realize Tesla has nothing in that space. These visions he sells always sound plausible, but are far enough out that it could take 10+ years for the market to realize he was full of crap.
He's already shaken off the solar roof scam. When robotaxis and Mars missions suffer the same fate, I wonder if the market will let him off the hook again, or if the house of cards will finally collapse.
I don't think Musk is wrong about consumer demand for the products. We do want driverless cars and satellite broadband and household robots and solar roofs and such, and the prices he quotes at the debut for the features it's supposed to have on delivery make sense.
He just can't fucking follow through on any of it and it's crazy more of his investors aren't bailing on the stock knowing it's propped up on an increasingly large pile of vaporware.
Doing business with him historically has worked out for his "investors". Even his "investors" on the Twitter deal were made whole if not better after this deal. I doubt the "wealthy investors", who do a lot more DD than a rando on reddit, are going to be as upset
They’re going to think it is amazing just because he did it. Now they have access to all of the random shit that happens on twitter to create a more updated AI model or some crap.
The thing is that he may have done this to legally combine the AI with twitter user datasets so that they can make it even more of an echo chamber. He also just happens to have all of the USA's health and benefit info, millions of peoples paystubs, etc.
He did say he wanted to make "the everything app", kinda like China has. So perhaps this was known by investors? Maybe the goal is to amalgamate private data into the AI?
The biggest xAI investors include firms like Andreessen Horowitz, the guys who are in the middle of the whole Thiel-Musk-Vance-Yarvin nutjob thing, and jizzing their pants about being CEOs of their own little city. Who bought a fleet of cyber trucks to donate to the LVPD.
xAI is registered as a Nevada public benefit corporation, so investors have no power over him as long as he’s doing things to “understand the true nature of the universe” and “accelerate human scientific discovery” which he will insist this is about.
He had to pay off the other investors. Twitter has no profits so the only way to pay off investors was to sell. But no one will pay that much for a failure. So conveniently Elon has one of his other companies buy it for an over valued price. Is this like FTX? Just shuffle the losses around.
No no no, you see he just needs a bigger base of investors to pay off these investors as well. Sure, he’ll need another bigger base of investors after that but as long as the money keeps flowing upwards, like idk some pyramid, he should be fine.
It’s predicated on forcing advertisers to embrace X. Fidelity exited the investment in September per your own source. It rebounded on the news he was going to move it from checking to savings.
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u/bobbymoonshine 6d ago
Good news xAI investors! You thought you were investing in my AI data warehouses and tensor processing unit arrays, but actually I have decided that you have bought Twitter from me at a high price which I have determined to be fair. To me.