Elon Musk's Latest Power Play: Is SpaceX's Minority Shareholders Being Taken for a Ride?
The recent deal to merge xAI, an artificial intelligence developer, with SpaceX, the rocket firm, has sent shockwaves through the business world. The combined entity is being valued at $1.25 trillion (£910 billion), making it the largest ever private company in history. However, not everyone is singing the praises of this mega-deal.
From a minority shareholder's perspective, the transaction looks more like an instant bailout of loss-making xAI rather than a strategic move to accelerate humanity's future. The fact that SpaceX's majority owner, Elon Musk, is also on the minority shareholders' side raises questions about transparency and fairness in the deal.
While Musk claims that the AI battleground will shift to space, many are skeptical about the benefits of combining these two companies under one roof. It may be possible for xAI to use SpaceX's rockets without having to house them together, which could have been a more commercially viable option. Moreover, the valuations seem excessive, with SpaceX reportedly being worth $1 trillion and xAI at $250 billion.
The real concern is that minority shareholders are being left out of the loop. As one investment trust manager noted, "the position is very different if your overwhelming exposure is to SpaceX." This deal may have been a PR stunt to generate excitement for the upcoming public listing of the merged company, but it still looks like a rescue mission for xAI.
The minority shareholders are right to be concerned about being taken for a ride in this latest Musk manoeuvre. While they may have made stupendous returns from SpaceX's rocket adventures, this deal raises questions about accountability and fairness. As one observer noted, "the beauty of SpaceX as an investment was the purity of its focus on sending satellites into orbit via reusable rockets... it's not like that anymore."
The recent deal to merge xAI, an artificial intelligence developer, with SpaceX, the rocket firm, has sent shockwaves through the business world. The combined entity is being valued at $1.25 trillion (£910 billion), making it the largest ever private company in history. However, not everyone is singing the praises of this mega-deal.
From a minority shareholder's perspective, the transaction looks more like an instant bailout of loss-making xAI rather than a strategic move to accelerate humanity's future. The fact that SpaceX's majority owner, Elon Musk, is also on the minority shareholders' side raises questions about transparency and fairness in the deal.
While Musk claims that the AI battleground will shift to space, many are skeptical about the benefits of combining these two companies under one roof. It may be possible for xAI to use SpaceX's rockets without having to house them together, which could have been a more commercially viable option. Moreover, the valuations seem excessive, with SpaceX reportedly being worth $1 trillion and xAI at $250 billion.
The real concern is that minority shareholders are being left out of the loop. As one investment trust manager noted, "the position is very different if your overwhelming exposure is to SpaceX." This deal may have been a PR stunt to generate excitement for the upcoming public listing of the merged company, but it still looks like a rescue mission for xAI.
The minority shareholders are right to be concerned about being taken for a ride in this latest Musk manoeuvre. While they may have made stupendous returns from SpaceX's rocket adventures, this deal raises questions about accountability and fairness. As one observer noted, "the beauty of SpaceX as an investment was the purity of its focus on sending satellites into orbit via reusable rockets... it's not like that anymore."
i mean what if xai was doing fine on its own w/o needing a handout from spacex? and isnt this just a bailout mission to save xai from itself?? the valuations r insane btw like who needs that kinda cash lol
... so yeah i feel 4 these minority shareholders rn 
they're literally getting taken advantage of here. $1 trillion+ valuation is just outta this world lol 
doesn't make sense 2 me that we gotta merge these 2 companies when xai could've just gotten its rockets separate... guess u never know what's goin on behind closed doors tho 
and taking minority shareholders for a ride! 1.25 trillion dollars is insane 
. What's next, him using our money to fund his other crazy projects like the Hyperloop or something? 
.
. We need more transparency and fairness in these kinds of deals. I don't want anyone to feel like they're being taken for a ride 
.
. I get that innovation and progress are cool and all, but can't we just have a little accountability in this deal too? 
. And what's the real goal here? Is it really about "accelerating humanity's future" or is it just some PR stunt to get people excited about the upcoming IPO? 
Either way, it's got me skeptical... and I'm not buying into the hype yet 
It's all very suspicious, if you ask me...
the valuations seem insane too, like $1.25 trillion is just straight up crazy 
i mean, what even is the point of combining xai with space-x if you're just gonna use their rockets for free? 