When Elon Musk announced that his AI startup, Zee, had acquired his social media company, X (known as Twitter). The All Stock DealHe raised some eyebrows. But in many ways, the contract was understood. Zee’s chat boot, Grook, was already integrated with x, X was fading financiallyAnd Kasturi needed a single path to see the $ 44 billion Twitter acquiring, and it looks less like a strategic game. Agi Dominion
It also pointed to how the Musk’s empire works: investing in any company is not about an immediate return to investment. This is about buying a mysticism around the muscles and swallowing a story of success that surpasses the actual number.
Something calls it a GriftBy pointing to the history of Musk Excessive proming and under -delivery. But the market is more tolerant.
“All Elon’s companies are basically a company today.” “All of this is already Elon, Inc. [the xAI-X merger] Just eliminate some myths that both businesses were separate.
The thinking between the bills of canist, such as Ron Baron, the founder of the Investment Management Firm Baron Capital, is the thinking “Everything [Musk] As Barn, “he helps everything Described it. Other businesses under Musk’s power include Tesla, Space X, The Boring Company, and Neurlanic. Some of them Allegedly share resources.
“When [Musk] Bought Twitter, is it a chance to keep this data, a great value for licensing? When he decided that he wanted to go to Mars with Space X, did he really think initially that there is a real opportunity for the Internet around the world, and there will be hundreds of billions of dollars of income? When she started with EVS for Tesla, did she really think it would be merged into driving, where you could earn hundreds of billions of dollars annually, and Grook […] And you are going to be connected to cars all over the world? […] They link all the businesses. This is the environmental system. This is Elon Environmental System, and I think it’s really interesting when you look like this.
Baron Capital has invested in Musk’s ecosystem, an example of the crossover of investors among various billionaire companies. Firms such as 8VC, Anderson Horwrouts, DFJ Growth, Federation Investment, Manhattan Venture Partners, Saudi Arabia’s PIF, Sequatia Capital, VY Capital, and others are also held in the Castorial Corporate Web.
Which brings us back to the XAI-X contract. The pundits questioned whether the acquisition X cost $ 33 billion, Its price is three times higher A few months ago, and how can Xi’s price billion be at 80 billion, keeping this AI company According to the notifications The tax is very low. But prices are not always based on what exists today. On the contrary, they keep in mind what investors are expecting – and when it comes to Musk’s plans, this is especially true.
Just look at Tesla. Electric vehicle maker has been treated like a tech stock for years despite the fact that Automaker marginIt is widely based on the belief that Tesla will one day unlock autonomy one day in the form of self -powered cars and humanoid robots.
“The reason for this [Tesla’s] The Managing Partner of the Deep Water Asset Administration, Jane Munster, told Tech Crunch that the stock trade is 80 times revenue and the camp group revenue is 25 times lower.
The Minister’s firm has invested in X, Z, and Tesla. This is exactly what kind of supporter is a supporter who benefits the most from the contract like X -buying X, assuming that Musk really fulfills his commitment to marry X’s real -time data troovo and Zee infrastructure and AI skills.
Of course, a stable price also comes with a increasing risk.
Columbia Business School professor Dan Wang, who is researching the Business and Society’s intersection, told Tech Crunch that the biggest immediate risk factor for investors was a case with the X -Securities and Exchange Commission (SEC). The case alleges that he accuses Kasturi of misleading investors by delaying the disclosure of his previous investment in Twitter. The SEC has argued that it allows Musk to artificially buy more Twitter shares at low prices.
Wang entered some of the risk concerns, such as anticotampity and user privacy concerns, especially about how X quietly selected all users to collect data for AI model training. Opt -In Change has already increased the iRe of a regulator, Ireland’s DPCWhich recently launched an investigation into Europe’s GDPR as a potential violation of the law.
Wang said, “Another kind of danger here is that there is no consensus framework for how the AI market is being organized, but you are already seeing its signs in Europe and, recently, in California,” Wang said. “Many of these framework are related to how the AI model is deployed in terms of distribution of information […] They accept responsibility for companies that are developing AI models, and are providing access to these models.
Rickman said that Musk could also lose interest in a project.
He said, “I think many of Tesla’s shareholders are feeling right now.
When asked about some of these dangerous factors, the Minister looked unacceptable. He advised that he was unreasonable, for example, the proposal for the value of Zai and the ability to become a dominant player in the AI.
“We are betting on the firm on the belief that the AI is going to change more than the idea of the people,” he said. “What is the price? […] Is one of one of the world’s mind?
Richman said that the musk’s eyes are not loyal to the eyes, but only truses Musk’s superpower to “divert the markets of the capital”, which allows him to work and develop a business that no one else can do.
“People who are in these businesses have just been Elon for a long time, and they will continue to go to Elon for a long time,” said Richman. “So it is not surprising to me that they will just continue to say that the emperor is dressed.”
Richman said that not for anything, like X, buying more speculation of Musk, is a way to open more investment opportunities in Muskor.
“Space X is a real thing, and it will never be public,” he said. “So the only way to invest in Space X is to access the tenders. And the only way to access the tenders is to be in the good waste of Elon.”