{"id":126043,"date":"2025-03-29T01:17:06","date_gmt":"2025-03-29T01:17:06","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126043"},"modified":"2025-03-29T01:17:06","modified_gmt":"2025-03-29T01:17:06","slug":"elon-musks-sale-of-x-to-xai-just-made-fraud-lawsuit-a-lot-spicer","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126043","title":{"rendered":"Elon Musk\u2019s sale of X to xAI just made fraud lawsuit a \u2018lot spicer\u2019"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsBillionaire investor Elon Musk has sold his social media platform X to his AI startup xAI in an all-stock deal, sparking controversy as it coincides with a US judge rejecting his bid to dismiss a lawsuit tied to the social media platform.<br \/>\nThe transfer of ownership of X to xAI on March 28 means that the class-action lawsuit against Musk \u2014 accusing him of defrauding former Twitter shareholders by delaying the disclosure of his initial investment in the social media platform \u2014 has become \u201ca whole lot spicer,\u201d Cinneamhain Ventures partner Adam Cochran said in a March 28 X post.<br \/>\nAcquisition may open up xAI to more \u2018exposure\u2019<br \/>\nOn the same day that Musk said \u201cxAI has acquired X in an all-stock transaction,\u201d a US judge reportedly rejected Musk\u2019s attempt to dismiss the lawsuit. Cochran said it has \u201copened up his AI entity to exposure here too, and it\u2019s a much bigger pie.\u201d<br \/>\nSource: GrokMusk said the deal values xAI at $80 billion and X at $33 billion, factoring in $12 billion in debt from the $45 billion valuation. He originally bought X, formerly Twitter, for around $44 billion in April 2022.<br \/>\n\u201cxAI and X\u2019s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,\u201d Musk said.<br \/>\nSource: Bryan Rosenblatt\u201cThis combination will unlock immense potential by blending xAI\u2019s advanced AI capability and expertise with X\u2019s massive reach,\u201d he said, adding:<br \/>\n\u201cThis will allow us to build a platform that doesn\u2019t just reflect the world but actively accelerates human progress.\u201d<br \/>\nHowever, Cochran claimed that \u201cMusk used his pumped up xAI stock to pay multiple times over value for X, but still take an $11B loss on the transaction.\u201d He said that Musk is \u201cscrewing over xAI investors, and X investors\u201d and was executed to sell user data to xAI.<br \/>\nRelated: Elon Musk\u2019s \u2018government efficiency\u2019 team turns its sights to SEC \u2014 Report<br \/>\nxAI is best known for its AI chatbot \u201cGrok\u201d which is built into the X platform. When Musk released it in November 2023, he claimed it could outperform OpenAI\u2019s first iteration of ChatGPT in several academic tests.<br \/>\nSource: Raoul PalMusk explained at the time that the motivation behind building Grok is to create AI tools equipped to assist humanity by empowering research and innovation.<br \/>\nWhile Cochran said that Grok being valued at $80 billion is an \u201cinsanely dumb valuation,\u201d crypto developer \u201cKeef\u201d disagrees. Keef said, \u201cThis is shady all around, but given the day, Grok is genuinely probably the top model for various tasks.\u201d<br \/>\nMagazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder<a href=\"https:\/\/cointelegraph.com\/news\/elon-musk-sells-x-twitter-to-xai-amid-fraud-lawsuit?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsBillionaire investor Elon Musk has sold his social media platform X to his AI startup xAI in an all-stock deal, sparking controversy as it coincides with a US&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126043"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126043"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126043\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126043"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}