Elon Musk might have a strategy to rescue X, and it doesn’t include advertising, free speech, or financial services.
There are strong indications that Musk is shifting his focus—and his business’s bullish outlook—toward AI.
Musk has openly acknowledged that he and his co-investors paid more than they should have for what was then called Twitter. The social media company is still unprofitable, with decreased revenue and increased debt.
Last week, Musk literally told Disney and other boycotting advertisers to “go f**k yourselves.”
The left-wing media interpreted this as a corporate suicide note, especially by those tasked with reviving the business Musk acquired.
However, an alternative perspective suggests that Musk is already downplaying the significance of that business, at least in terms of revenue and valuation, in favor of the OpenAI competitor he introduced earlier this year.
On Tuesday, X.ai Corp. disclosed in an SEC filing that it’s raising up to $1 billion in equity funding, with nearly $135 million already banked. No investors were listed.
It’s not clear if X.ai falls under the same corporate umbrella as X Corp. (formerly Twitter), which is part of X Holdings Corp. A spokesperson for X Corp. stated that they “can’t share anything” regarding this matter.
It would be logical to assume that they share a structural foundation, especially considering that X.ai is anticipated to utilize the flagship’s content and user base.
For those who contributed to financing the Twitter takeover, this could imply having both direct equity exposure to X.ai and the opportunity to make additional investments.
If X.ai were to eventually reach the valuation that OpenAI currently holds, especially considering the early stage of generative AI adoption, the shareholders who were involved in the “Twitter” acquisition would find themselves in a highly profitable position.
Musk noted: “I have never lost money for those who invest in me and I am not starting now.”
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