In an even bolder move, company X handsomely buys xAI in an all-stock deal that values xAI at $80B. This purchase marks a significant new chapter for each firm. X is currently worth $33 billion, or $45 billion if you count the $12 billion of debt. Elon Musk, the architect of both corporatism and Tesla, has already teased his departure from his new post as Department of Government Efficiency (DOGE) head. He might resign as soon as late spring.
Musk’s Possible Departure from DOGE
Musk already has a government designation as a special government employee (SGE) in DOGE. His status, though, is set to expire on May 30, after a controversial 130-day clock that started counting on January 20. The US Federal Labor Relations Authority determined that Musk’s SGE status was established on the basis of their good faith estimate.
“Your SGE status is based on our good faith estimate that you will not work for more than 130 days.” – US Federal Labor Relations Authority
In fact, nearly all of us don’t believe that Musk will resign at all, despite his public pledge. After all, he’s yet to deliver on his promises at home. Despite all this uncertainty, Musk is still pushing DOGE’s austerity measures, which have sparked protests and lawsuits up to the United States Supreme Court. So far, Tesla has been the most directly affected by these cuts. Currently, Americans are 12.8% more likely to hold an unfavorable view of the company with this number going up to 35% among liberals.
In particular, the acquisition of xAI by X should lead to many new innovation opportunities. When the merger was first announced, Musk was optimistic about its potential impact.
“This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.” – Elon Musk
Musk went on to discuss the long-term strategic blending of assets between the two firms.
“Today, we officially take the step to combine the data, models, compute, distribution and talent.” – Elon Musk
SpaceX’s new Starlink internet service is under fire for unclear terms of service that endanger its support for Ukraine. This has resulted in calls for a social media boycott.
What The Author Thinks
Musk’s aggressive business moves, from the xAI acquisition to his controversial political and business strategies, create a pattern of instability that not only affects his companies but also the broader market. His public statements and frequent promises have failed to materialize, raising concerns about the future of his ventures and their impact on his companies’ reputations.
Featured image credit: Heute
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