Anyone figured out yet if this is a way for Elon to dilute the other X shareholders by buying it with shares of something he ~fully owns?
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Discussion
I believe it’s simpler. It is a way to cut his losses from the forced buy of twitter.
Also, xAI doesn’t seem to have a better use for the money right now than to put it into Musks (+ other owners) private pockets - which is the most bearish news I have ever read about AI.
All stock deal, no cash.
the dilution will probabaly occur with the next round of xAI. x shareholders will be diluted in their equivalent xAI shares since no more raises can take place in X shares.
xAI already had an inflated valuation compared to X, so I’d say it’s pretty dilutive :). Maybe X shareholders don’t care cause it’s been driven into the ground, dunno.
Can he write off a big loss on his taxes?
no clue! I'm kinda hoping for the most-optimistic take: that X.ai's B-corp status now also applies to X, and that shift will, in the long run, be a Good Thing, if X has "future plans" where _that_ legal difference will matter. like maybe boosting its use of self-chosen algos?? or, gasp, protocols?!