Seems to me he's just scammed xAI investors, who thought they were investing in an AI company, into bailing him out of his failed Twitter purchase - they are now the idiots who paid $44B for Twitter (recently valued by Fidelity at $10B), and Musk gets his money back.
“Musk did not ask investors for approval but told them that the two companies had been collaborating closely and the integration would drive deeper integration with Grok.”
Unlike the shareholders of a company being acquired, the shareholders of an acquiring company do not need to be asked prior to the company making an acquisition.
IANAL, but this might be brought to court, if the company mission (as defined in their operating agreement) is to invest in AI, then buying X is not in the best interest of the company and not what the investors signed up for. It could be fraud.
Am a lawyer, this is an incredibly silly and unlikely thing to suggest for a for-profit company set up on behalf of an even mildly sophisticated party in the USA.
Nearly ever such company is "limited" to engage "in any lawful activity" so as avoid exactly this issue.
So your justification rests on the theories that a) Musk (Twitter) was denying Twitter data access to Musk (xAI), and b) Twitter data - a firehose of ill-informed flamewars and bot responses - would provide some incremental benefit to training a frontier model.
I thought I also heard that the people who agreed to buy Twitter's debt got the deal sweetened with some XAi stock.
Sooo, did that debt get paid off, and they got XAi stock. If so, buying that Tesla debt might not have been the complete bloodbath it should have been.
Fidelity valuing at $10B is ancient outdated news no longer reflective of reality, the value had skyrocketed in recent months, given the profits which now exceed profits as a public company. [1] [2]
In fact, Twitter debt is selling at 97% of value, indicating high confidence in the company. [3]
> Twitter debt is selling at 97% of value, indicating high confidence in the company
I helped some friends buy this debt. It has nothing to do with Twitter’s strength as an enterprise, but Musk’s brand as a political one. There is a great book on 90s Russia before Putin took power—the pre-Berezovsky playbook looks like the way to go in America right now.
