Maybe this is a good deal for shareholders of SpaceX and xAI. But then maybe it isn't a good deal for one set of shareholders. I have no idea, but I would love to be a shareholder in SpaceX and would not want to be a shareholer in xAI. Totally depends on the price of course.
If SpaceX pays too much for it, other SpaceX shareholders have a case against SpaceX leadership. If xAI accepts an offer that is too low, other xAI shareholders have a case against xAI leadership. Given that the leadership is basically the same people, they are very well incentivized to come up with a valuation that is as fair as possible.
And this is not just theoretical, Musk has already been sued successfully once on a similar case, when his companies gave out too much free support to the boring company.
They don't, so why shouldn't he think that way?
The better question is whether or not this merger makes any sense.
Exactly. I think it was obvious he was shifting the debt around when xAI merged w/ X right after xAI raised a large funding round and had cash in the bank (which it could use to pay down the X debt).
SpaceX IPO will save the current xAI/Twitter bag holders
Still haven't seen a successful PoC datacenter in orbit. If you own the rockets, maybe get that done tomorrow? I do assume your investors will want one working before they dump even more cash into the idea. But what do I know.
Sometimes you just need to get the founders in a room together to hash things out and magic can happen.
Hence the shenanigans.
I'm just waiting on the final merger with Tesla. The Tesla earnings release mentioned a big battery deal with xAI plus the previous Cybertruck deal with SpaceX so you know it's coming.
What are we doing here
And then along came xAI where a bunch of people gave Elon money and he "merged" Twitter and xAI, basically siphoning off billions of the investment funds ti bail himself out. If securities law had teeth, he probably should've gone to prison for this.
At the ssame time, why weer people giving this charlatan man-child billions to invest in AI?
The problem is they weren't buying AI. IMHO they were buying a seat at the table and an influence in the administration, a bit like the Saudi sovereign fund's "investment" in Jared Kushner.
Thing is, this isn't the first time he's done this. Elon used one of his companies (Tesla) to buy another of his companies (SolarCity) who was essentially insolvent but owed a lot of money to a third of Elon's companies (SpaceX). There was a lawsuit but it was dismissed. If you're sufficiently wealthy, the law basically doesn't apply to you [2].
I knew before even clicking on this that the justification would be orbital data centers (and it is). They make no sense becaus eof launch costs, cooling and cosmic rays and solar radiation.
Is this the continuation of the Twitter buyout shell game?
[1]: https://www.cnn.com/2024/10/02/business/elon-musk-twitter-x-...
The same reason Adam Neumann got another $350M They all know its a game and that game is prop up the valuations. They get rich off of the speculation and hype rather than the substance
What a load of absolute horseshit. At what point do people start opening their eyes?
unstoppable force (spacex) meets immovable wall (twitter, xAI, tesla)
What does the process look like, exactly?
You get sued.
You drown the court in expensive lawyers.
Rinse. Wash. Repeat.
https://www.wsj.com/tech/bezos-and-musk-race-to-bring-data-c...
https://www.nytimes.com/2026/01/01/technology/space-data-cen...