This is probably a play to make X more invest-able, probably combined with some training data rule he foresees in the future.
Musk's companies have raison d'être, and the mergers (SCTY & TSLA) generally have one too.
X has been bleeding money, but has no access to cash. AI on the other hand he can peddle to sovereign wealth funds, apply for government grants, etc. X then becomes a write off against a larger company. xAI seems to be a pretty small company though; linkedin gives me 11-50 employees, which is pretty small for a DIY scaled LLM company worth (WHAT?!)...
Well some VCs are going to be happy. Or sad. Either way, they'll likely need to mark down their fund.
Musk's companies have raison d'être, and the mergers (SCTY & TSLA) generally have one too.
X has been bleeding money, but has no access to cash. AI on the other hand he can peddle to sovereign wealth funds, apply for government grants, etc. X then becomes a write off against a larger company. xAI seems to be a pretty small company though; linkedin gives me 11-50 employees, which is pretty small for a DIY scaled LLM company worth (WHAT?!)...
Well some VCs are going to be happy. Or sad. Either way, they'll likely need to mark down their fund.