Elon Musk's Private Business Problems (For Once) Look Like They're Turning into "Opportunities" for all public companies, after Tesla's CEO announced that he would ask shareholders to vote for an investment in his AI.
It's a move that looks like an elegant way to save one of my most expensive business ventures.
The decision comes after AI acquired X/Twitter in March of this year in a deal with shares that value the social network at $45 billion - a value that most observers consider to be greatly overvalued. It should be remembered that Musk originally bought Twitter in October 2022 for $44 billion in a deal that was widely criticized as a bad deal.
The platform's value eventually fell to under $10 billion - due to moderation issues, the rise of trolls, racist and conspiracy theories, and an advertising boycott, before Musk decided to sell it. "save" by transferring it to AI. Meanwhile, however, the main goal of the social network's campaign was fulfilled - billionaire-backed Donald Trump was re-elected president after a strong social media campaign.
On the other hand, Musk is investing exceptionally heavily in the generative artificial intelligence business, after he wrote the age of AI overkill and even He insisted on ethical grounds that it be restricted. In the end, his large language model Grock is already in its fourth version and has shown very good results, but the same cannot be said for the social network in which it is integrated.
X/Twitter is characterized as an online center for right-wing radicals and is far from being transformed into a "super app" for everything that was officially stated as a goal by Musk. Even in the newest version, Grok is prone to making racist and offensive comments and it has been proven that when asked controversial questions, he directly seeks correction, as Elon Musk wrote in his profile. ΠA few days ago, the social network's CEO Linda Yakarino announced that she was leaving the company.
There have been reports that AI is preparing to raise capital at a market valuation of up to $200 billion, but at the same time it still does not have a product specifically designed for business. This clearly sets it apart from the leaders of the market and underlines how the company actually works.
The man, however, presents the proposition that is valid for the Tesla invectitopites. "He cried from me. If it were up to me, Tesla would have invested in the house a long time ago," he wrote in response to a user with the nickname "ТУЛА4орханс", who claimed that it was unfair that Tesla's small investors could not participate in AI.
In fact, however, Musk is already using Tesla's resources to help private companies. Last year, he repurposed Tesla's high-tech NVIDIA H100 GRU processors to AI and X/Twitter, even though Tesla needed them to train its self-driving systems. The company also lost key talent that had been "attracted" to the company. from the AI.
ΠThe upcoming vote will be held at Tesla's annual shareholder meeting, which this year has been postponed until November - the latest in the company's history. This gives Musk about four months to campaign for the idea.
Meanwhile, Sraseh is also considering investing $2 billion in AI, according to recent reports. It seems that the entire "Mosconomy" is being mobilized to help the business that brings the richest man in the world the least money but the most influence. ΠThe result is not to be underestimated - especially after the feud between Musk and President Trump and the billionaire's ambitions to create his own political party.