Elon Musk has sold social media site X to his own xAI artificial intelligence company in a $33 billion all-stock deal, the billionaire announced on Friday.
You have to remember that he wasn’t alone in purchasing twitter. He brought others along with him. Now that value of twitter has gone down the tube, I’m sure he’s got a ton of unhappy investors on his hand screaming at every quarter’s results. He’s trying to recoup what they paid for by giving them shares in AI company. And in turn artificially raise the value of the AI company privately as well. It establishes a benchmark for AI company’s valuation for later private investors into that company.
$33 billion, 3/4 what it was valued in 2022 when he bought it.
Honestly I’m surprised it’s still worth that much. (or rather, that’s he’s succeeded in claiming it’s worth that much).
He paid it to himself. The value is completely made up.
You have to remember that he wasn’t alone in purchasing twitter. He brought others along with him. Now that value of twitter has gone down the tube, I’m sure he’s got a ton of unhappy investors on his hand screaming at every quarter’s results. He’s trying to recoup what they paid for by giving them shares in AI company. And in turn artificially raise the value of the AI company privately as well. It establishes a benchmark for AI company’s valuation for later private investors into that company.
xAI has raised maybe $12B from investors. And, supposedly, makes $100M/yr.
The valuations are absurd.
“Makes” by selling what exactly?
Also, thats an insane valuation based on earnings. 120x
Subscriptions and licensing, supposedly.
$12B is just how much money investors put into it. The company’s valuation is $80B. Which is insane.
It dropped a lot lower than that but spiked back up once he became the leader of America