In an announcement on his Twitter (X) account, Elon Musk announces that xAI is purchasing X (Twitter) in an internal stock swap. Twitter was valued at $33 billion, and xAI at $80 billion.
The remaining $12 billion in debt attributed to Twitter, can now be removed and paid to the debt holders without worry of the financial instability a repayment would generate. IMHO this was the motive.
Those who followed my research on Twitter financials, clearly understand how the platform needed to restructure. The same people who organized the Twitter financing are the same people who just organized the merger.
As noted by The Wall Street Journal, “The new valuations were determined during negotiations between the two Musk arms, which both had the same advisers.”
The Twitter debt holders can now get repaid without impact to Twitter. Note, by Musk’s own admission the debt within Twitter is the same today as it was on the original purchase date. No debt was paid down.
Elon Musk – “xAI has acquired X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
Since it’s founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale.
X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth.
xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.
I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning.
Thank you for your continued partnership and support. (link)
I’m not going to spend much time on this other than to note CTH long-term analysis of the Twitter financial issue was 100% accurate, much to the chagrin of those who preferred to play a game of pretending.
Instead of a Twitter IPO approach to recover the financials and unload the debt, xAI was created – generated a stock valuation and then merged with Twitter.
Well, ain’t that a daisy.
Both companies are privately owned. They can do whatever they want!
I posted here when the story broke that Elon was buying Twitter that he was going to use it to train his AI. Now, I don’t know if that was the main reason and “free speech” was a secondary reason or the first? I suspected his AI was a significant reason all along…. God bless America!!!!!!!!!!!
OMG!!! Luv that graphic!!
AOC thinks that’s free electricity.
🤣😂🤣😂🤣😂🤣
👍
She’s installing it in her electric car ASAP.
Right next to the small wind mill,…she ‘splained it that as she drives, that turns the fan blades on the windmill, and they turn a generator that charges the battery.
Free electricity!
and its exactly how her brain is wired.
Brain??
BOTS DON’T HAVE BRAINS!
🤣😂🤣😂
Kamalah type of wired brain. Input equals output which is null.
AOC thinks? I am pretty sure she she is a living brain donor.
thinking is not her muse.
You may not realize it but Deep State AOC is playing you like fools. AOC is playing 4D chess while you are playing checkers. It is all an act. USAID paid for AOC to go to an African country in 2009. AOC went undercover pretending to be part of a group researching women’s care in rural areas. Soon after AOC left, there was a coup in that country. AOC also met with two Israeli entrepreneurs. AOC has her own children’s book company. You can look all this up.
Don’t take the cheese. Do you really think a bartender can pay $55K/year for tuition at Boston University, go to Africa for a boondoggle, meet Israeli entrepreneurs, and have a book company? Her ‘hubby’ was a speechwriter for Barry Soetoro.
Wake up. These people are not the idiots you think they are. AOC’s mission was to destroy the Bernie Brothers who were getting too big.
There is a level of brilliance there that can pretend to be an imbecile and garner more votes than those pretending to be intelligent. All with the backing of the mainstream media, of course.
In the windmills if her mind?😂
Actually had a customer with this problem. Paid me $85/hr plus parts (extension cord) to fix it. In all fairness, it was a hornets nest of computer wires under a desk. 40 zip ties later, it made more sense, and modest embarrassment ensued.
How Sundance comes up with these things is a miracle unto itself.
“… a miracle unto himself”. Please X was predicted to go lights out by October 2023. Never happened period.
How convenient you left out that it was found out right after X continued operations that it was Larry Ellison and Oracle that was providing liquidity (cash) for X to pay the bills and keep the lights on at X because Musk didn’t have the operating capital (cash) to do it himself and X couldn’t generate enough revenue to cover the expenses either.
Guess you missed those topical posts from Sundance explaining and revealing that.
Concern noted.
Watch the DOJ jump on this transaction via investigation to harass Musk (and Trump). We know from countless prior prosecutions for financial crimes that one can always be found when you set-out to tag someone. Funny how they can never find crimes when they don’t want to.
We have had a weaponized federal law enforcement for many decades. Trump was the one to expose it to the entire world, but it was always there ruining people’s lives. Bondi is busy doing her hair for another Fox News (job) interview, so she’ll be unavailable.
Bondi will do what PDJT tells her to do.
I hope DJT remains the one telling her what to do. I’m expecting her to become Rosenstein and Barr in a smaller, less threatening package.
She’ll just talk about it on FOXnews.
Unless she is the pretty face up front and the work is done behind the curtains.
Never judge a book by its cover
Never cover a judge, just book em, Dano!
Well Ima gonna go get me a…beer. (Pocahontas).
After discovering magic money machines, Elon now understands that financial perpetual machines are a reality.
I wonder if they will serve self-licking ice cream in the break room.
Elon did not create the laws that allow financial irresponsibilities. He is merely using such existing laws that the wealthy paid the politicians comparatively tiny chump change to pass legislation for them to exploit and enrich themselves.
Hell, I do it myself!
In any case I am thankful that Elon Musk purchased Twitter, and exposed the treachery that was actually taking place in and through Twitter.
True. Musk knows the financial tools in detail. Tesla makes money off of selling the government invented carbon credits to other companies, not selling cars. Musk is the ultimate corporatist, government approved companies selling to government , their existence due to government approval.
wonder
“I-Scream for I-Screen.” – FJB
Does this merger enable AI penetration of private X accounts?
The same as it ever was.
Is there such a thing as a private social media account? Was never on Twitter until Musk purchased it. Got booted from both X and Facebook in the same week last month. Blessing in disguise.
I’m not an X user or influencer, but Grok said you have to press the think button.
“To use Grok 3’s reasoning capabilities, just press the
Thinkbutton.”x.ai/news/grok-3
I don’t think XAI was created to absorb the Twitter debt.
Musk and Sam Altman created Chat GP, the first real AI entity before Musk ever bought Twitter. Musk did not want Chat GP to be monetized and Altman did. Musk left CHAT GP and Altman got MICROSOFT TO CONTRIBUTE MILLIONS TO THE COMPANY AND IN RETURN MSFT GOT 49% ownership. Musk then created XAI and he has Always been involved in the AI movement and wants it to be controlled and not monetized. The fact that he was able to join X with his AI COMPANY was a good business move. He is the richest man in the world because he is brilliant. Right now he has done more to help Trump and to expose the government waste, abuse and fraud than any single individual has ever done, and it has cost him over a billion dollars in Tesla value due to the far left’s TDS. Will he eventually reap any monetary rewards for his efforts? I for one, sure hope he does.
A certain segment of the MAGA followers need to quit making perfect the enemy of good.
He just monetized Ai to the tune of 80 billion. Otherwise , I affirm your message here. Today, he’s on the right side.. I think it’s for real because, like Trump, he is acting against his financial and business interest.
I don’t disagree.
I also think that even if he did, so what? While flow through money in business entities has the appearance of a singular entity; at the end of the day XAI came to life and generated a new flow of money. Just because he used the new flow of revenue to acquire another entity he owns, does not equate to the same surge protector inserting itself into itself.
That being said, I completely understand Sundances overarching message about these people, and fully support it. It’s just my CPA side that makes me look at some things differently.
But, to those that see this as good versus perfect, we must all cling to that belief. These men are not only good at their businesses, they just may be so clever, they can play the long game better than anyone on earth. That is the fear. Them waiting out the 78 year old genius, siding with him in the near term, then moving him out of the way past his time. THAT is the fear.
BUT, at the end of the day, God controls ALL. And he’s already informed us of the end. I just hope this isn’t it and my children don’t have to deal with it when I’m too old or passed on.
Excellent comment.
Your last sentence is very true. Hopefully that changes and people understand just what that means.
Actually, it hasn’t cost him any really Tesla valuation drop.
Yes, it is down $230 since it’s high but one could argue that $490 peak wasn’t a real valuation. Right now it is priced a little higher than the day of the election.
Few understand that the Twitter, Starlink, Tesla, and SpaceX are not money making ventures. They are certainly are not, they are vehicles built to generate cash flow and paper valuations high enough to underwrite a massive network to supply ” benefits” to all of mankind. As these separate ventures become linked, obviously through AI, the main benefit will become a monitoring and control grid. All brilliantly financed by the people under control of the grid.
The debt of Twitter was never a significant issue to those “responsible” for it.
Musk and several of his associates appear, to me at least, to be on the side of freedom and the welfare of the population. For now.
But an organization with this much reach and power is way to big a temptation to remain benign as the reach and power grows.
Do you remember the phrase “too big to fail” well this is what is happening with Starlink, Tesla, SpaceX, Twitter all combined will be too big to fail and the US government will have the power to control it and use it to their own evil deeds, look what George W. Bush and Hussein Obozo all did using the Patriot Act.
Exactly. We likely agree that the unpatriotic act was indeed used for its intended purpose.
Yup
I also remember power corrupts and absolute power absolutely corrupts.
Exactly! It’s a ticking time bomb and no one is there to protect us from it.
Remember Google’s former motto was “Don’t be evil”.
Then they got an Indian CEO……
I agree with the good intentions that you mention are behind all this.
But, as you also point, out the reach and power is something that should be of concern.
For that, the Sherman Anti Trust Act is waiting in the wings, so to speak.
“The act was a response to growing public dissatisfaction with the rise of industrial monopolies and corporate trusts during the late 19th century. “
This quote from an AI Google response. How’s that for appropriate!?
One word: Blackrock.
Don’t forget Neuralink.
https://www.wired.com/story/neuralink-first-patient-interview-noland-arbaugh-elon-musk/
Helping the handicapped at first, but who’s to say sitting in your 2030 self driving Tesla won’t involve relaying all your thoughts to xAI?
After sacrificing his son, now daughter, to the party line, hopefully Elon has shed any evil globalist oligarch inspired leftist agenda he may have ever had, and we won’t end up in a mishmash of Minority Report and I Robot, left with ‘Ya know somehow, I told ya so, jus dodn’t quite say it’
Of note –
Zip2 (1995, Compaq bought 1999)
PayPal (1998)
Space X (2002)
Tesla (2003)
Solar City (2004, Tesla bought 2016)
Starlink (2015 Trademarked)
OpenAI (2015)
Neuralink (2016)
The Boring Company (2016)
Optimus (2021 Robotics arm of Tesla)
Twitter (Oct 2022, became X 2023)
X (Jul 2023, combined into xAI Mar 2025)
xAI (Jul 2023, bought out X Investors Mar 2025)
And this is a surprise on how the stock market really works? No surprise here. It’s par for the course.
Tesla should start making gas powered vehicles. Their cars are 100% American made. I’d buy a hybrid from him, but not all electric.
Tesla would not be able to easily manufacture ICE engines on assembly lines designed for electronics.
There are plenty of companies that will sell engines to Tesla.
https://www.scoutmotors.com/
Hybrids are an option.
I never did understand why the jump into all electric and not a transition into hybrids. I bought my daughter a used Prius when she was in high school simply because it was a great price and in beautiful condition. I knew nothing about hybrids at the time and, in my ignorance, was a skeptic. Not any more. Over eight years later, that car has saved her serious money in regards to gas and maintenance. It is an energizer bunny. Comfortable inside and a real workhorse. Everyone in the family is a fan. If I weren’t so broke from the Biden years, I’d buy a hybrid like that all day long.
A Prius is also far safer than you might think. I was recently hit by one. The driver was not injured at all thankfully.
All the Camrys sold this year were hybrid.
Saved a fantastic amount of gas overall and the relatively small battery in each allows mass production. The massive battery in EVs with 300-500 miles ranges would be equivalent to 100+ battery packs for as hybrids.
Think diesel hybrid…….
Think the Omega Car. No hybrid, a straightforward 1.8 L turbodiesel, that gets 100+ miles per gallon, and 0-60mph in 4 seconds, and could be produced for $20,000…
A girl can dream!!!
Love my diesels!
I’ll ride my 300 CD Turbo diesel till she dies. Classic comfortable well maintained. 40 mph and a 700 mile range. 85 vintage.
I agree. The jump over hybrids from gasoline powered cars directly to EVs was kind of ‘not ready for prime time stuff’ trying to encourage the average Joe to pay the huge costs and suffering the growing pains of buying and owning an EV. The hybrid would have been a nice compromise that probably would attract more buyers and the cars might have been cheaper all around than the EVs.
It is what it is for now anyway. I personally think fuel cell hydrogen powered cars are going to be the big thing in autos before long. We shall see I guess.
Not sure I like the integration of government, media and the AI king in one tidy corporate package inserted at the highest pinnacle of American and world power. Not sure I like that at all.
The 1960’s star trek M5 5th version was tested on the enterprise to replace human input.
It passed a couple if tests and then was given full control.
m5 started killing humans that got in its way to preserve itself.
It kept killing until it reprogrammed to understand murder was wrong and must be punished.
M5 was an AI warning for the future.
If you let AI take full control it will get out of control.
At some point AI as musk has ssid, will kill us.
So why is he acting like a mad scientist producing newer xI versions?😳
Of all the things you have been wrong about Elon was the biggest. I have never seen someone more wrong about something than you were about Elon buying twitter.
You have no idea if Elon is playing the long game. So far, so good. But you MUST keep in mind, Elon is probably a quarter century younger than PDJT. And just as successful. I won’t say more successful, because PDJT made his money in a more “salt of the earth” fashion. While PDJT may have used some of the law against the system at times, his fortune is built on brick and mortar, literally. And he’s phenomenal at it. Musk rose up with a lot of liberties taken in my opinion. Impressive none the less.
Making a bold statement such as yours, has the possibility of boomerang effect that could be devastating.
Choice #1: continue to repay the $12B in debtholders out of X’s free cash flow.
Choice #2: IPO X and repay the $12B from IPO sales.
Choice #3: create an entirely new business highly valued by the marketplace, merge the two and send the bondholders home happy.
I’m trying to see the nefarious plot here….
My recollection is that Larry Ellison forked over much of the $12B to keep X afloat whilst Musk streamlined it. Ellison deserves to get paid.
Yes he does. Trump and Ellison are good friends and Oracle has been a great technology company. I’m thrilled that we finally have some smart tech people on our team. People who have started businesses and not lifelong taxpayer teat sucking politicians.
It is Musk negotiating with Musk and creating a new company and new stock to control both. Hard to tell what happens with the Debt. Cannot tell if either company is profitable. With Twitter Sundance analyzed that the bigger it got the more money it loses. Can’t tell if that still holds and there is no information about xAI making money.
I am not a fan of Too Big To Fail. Sooner or later a company gets an Immelt and turns a big huge company into mush…..
Next up: ‘Bank of X’ (X-integrated blockchain ‘payments app’)… – And that’ll be pretty much Tic Tac Toe for Musk’s little corner of the PanoptiCON/Digital Gulag.
Tic Tac
SikTok
corner
Social Networking Wars
I don’t really understand how paying off debt holders would generate financial instability, but I am not a billionaire. Musk owns both companies, and I have no problem structuring them as he sees fit.
Interesting. Despite all the ‘bulk’ that Musk apparently carved off of Twitter, the debt remains the same, 18 months later. I wonder if Musk’s input with DOGE will have the same result……
Boyle has done quite a few solid analyses on various business topics.
The one on Musk is worth a listen:
Interesting. Thank you.
Very smart move.
Excellent – you called it all waaaay back.
briliance..again mad respect for Elon who has demonstrated what can only be considered genius…and right
God Bless America
also noting: Elon, I would like you to auction the P1 McLaren you bought some years ago and give me first rights of refusal. I plan to build a museum around it as one of the most interesting technologies and advances in modern automotive design that I am convinced that was your inspiratation to build EV vehicles (even though I believe ev vehicles not make economic sense or square certain physics economics I can still respect the technology as important)
give me YOUR P1. Just do it. I will trial Nürburgring and reset the course record for 1990’s era class production. I dare you. I will televise this event. on me GO!
God Bless America
Underestimating Elon doesn’t have a great return on Polymarket.
https://www.mobihealthnews.com/news/elon-musks-neuralink-files-trademark-blindsight-telepathy-and-telekinesis
Elon Musk’s Neuralink files to trademark ‘Blindsight,’ ‘Telepathy,’ and ‘Telekinesis’
And Elon still has another $40B+ {plus damages} coming for the unlawful {illegal} withholding of his duly earned Tesla performance bonus.
I love the smell of Capitalism…
In God We Trust
Trust God
Fear not
Capitalism
Competition is a threat to democracy.
“The UK has responded to the refusal by Gab, an American company, to obey UK censorship law – by threatening to go after any other American who provides services to them.”
https://x.com/prestonjbyrne/status/1905666002471305351
The free market hates competition.
“Gab lost access to international payment processing last week. Now we know why. So not only is the UK government trying to destroy our US business, but they are targeting any business that works with us and trying to destroy them too.”
https://x.com/BasedTorba/status/1905670520995037690
So I was helping out my friend babs {broke ass Brenda} today and it dawned on me that she, me, and Joe Dan must be cuzins…
They keep trying to remove US but…
We {The People} can’t be much farther than twice removed from each other…
Imho
In God We Trust
Trust God
Fear not
Correction : baBs
The lust for knowledge goes on. AI is on the menu today.
Genesis 2:17 “But of the tree of the knowledge of good and evil, thou shalt not eat of it: for in the day that thou eatest thereof thou shalt surely die.”
With the upside, there will be a huge downside. It will be used against us.
🤣😂👊👊
And xAI had the benefit of LLM from Twitter data….
Elon is giving MAGA a hand right now…. I do not trust his long term strategy… Larry Elllison et al….
That power strip picture also speaks to crypto currency.
Zero assets.
Power strip input plugged into output.
Zero voltage.
Sundance, I love the meme, but the tax consequences to the advantage of Musk’s companies are tremendous.
Another plus is it reduces the pressure on Tesla stock which looks like it is in range of support.
Follow The Money: Ex-WSJ Journalist Reveals 24 Organizations Funding Tesla Takedown Madness
BY TYLER DURDEN
SUNDAY, MAR 30, 2025 – 08:45 AM
“…24 organizations and counting are funding and organizing the #TeslaTakedown protests and leading the very partisan propaganda campaign against Tesla, Tesla drivers, Tesla employees, Donald Trump and you. See below to see all 24 groups with their revenues, involvement, tax ID numbers and other info.
These organizations have combined annual revenues of at least $124 MILLION and counting.
100% of the groups are aligned with the Democratic Party. At the protest on 3/29 at Tyco Road, in Tysons, Va., a photo I took of a “Virginia Democrats” sign in front of the Tesla dealership.
Most of these groups enjoy tax-deductible status as 501(c)(3) and 501(c)(4) organizations, claiming they are “nonpartisan.” A few have PACs. The organizations have not returned requests for comment.
Database
You can see the raw data on 306 #TeslaTakedown protests in the database here.
Back story
I’m a former Wall Street Journal reporter and a propaganda expert and editor of the @DPearlProject , a journalism nonprofit named for my WSJ colleague and friend Daniel Pearl. Since Oct. 7th, I have been reporting on the anti-Jew, anti-America, anti-Israel protests and building a database, following the money. It numbers 2,000 groups now, and I am working on a web and mobile app for parents, policymakers, university administrators, law enforcement, the public and others.
I went to the #TeslaTakedown protest a week ago Saturday on Tyco Road at the Tysons, Va., and saw familiar faces from Indivisible and the Fairfax County Democratic Party, shouting for you to be deported as they stood outside the Tesla dealership. I wondered too who is organizing and funding the protests nationwide.
I got the protest details scraped from ActionNetwork and Mobilize, the two platforms aligned with the Democratic Party promoting the #TeslaTakedown protests, and built a public database of the groups behind the Tesla protest.
AstroTurf, not “grassroots”
In an article for the @FairfaxTimes , I wrote about how the local protests in Tysons, are a window into how the protests are AstroTurf, not “grassroots.” What this case reveals is the way that a multi-million dollar professional protest industry manufactures outrage in top-down political theater, agitprop, or agitation propaganda, and now criminal offenses. Here is the article.
Next step:
I just got data on the April 5 #HandsOff protests and will be adding that data to the database. In addition, I am completing an analysis of the propaganda using the tools of natural language processing and content analysis.
Why is this important to report on? Because defending principles of free enterprise and individual liberty in the U.S. means allowing people to buy whatever make of car they wish without fear of danger or harassment and allowing companies to do business without fear of danger or harassment.
All, please let me know if you have any questions, ideas or recommendations. Asra [email protected] To support the Pearl Project: http://asranomani.com/donate
24+ Groups Leading and Funding #TeslaTakedown (and counting) (view full list here):
https://www.zerohedge.com/political/follow-money-ex-wsj-journalist-reveals-24-organizations-funding-tesla-takedown
Life is but a Sci Fi Action Adventure, and Elon is writing the script.
In this installment, he disengages himself from a group of Evil Overlords.