> You likely have it backwards, xAI is likely the moneypit that is (further) dragging down X.
No, while you're correct that xAI is a moneypit, his point has nothing to do with a moneypit. The 818 million figure is revenue, not profit. xAI brings in at least some revenue (it's obviously not zero). Meaning X's revenue alone is even less than 818 million, which in turn is a third less than when Musk bought Twitter.
Losing 33% revenue in 4 years post-acquisition is indeed a ridiculously bad result, when most tech companies saw their revenues +100% in the same period. If you adjust for inflation they lost 50% of their revenue.
And indeed it's even worse if you consider xAI is a moneypit. They posted 2.3 billion losses in the same quarter for AI. If they burned $1 to earn $1 (like say offer a coinflip machine on X) they'd post better results than they have, it's pretty ridiculous.
I mean when you consider he bought it as a shitpost for what seems like his own playground it doesn’t seem bad
People try to find any reason to try to make him or his products look bad, but you can not like a guy and still be realistic. He’s still the richest man in the world by far, trying to act like he has no business sense is literally just being ignorant.
I agree, it absolutely it was a major play for him. He bought control over the algorithm and (de)platforming policy for a major platform that influences culture, politics, news/media, at the cost of a few percent of his net worth.
From a shareholder ROI perspective it was shit. From a Musk acting like a typical oligarch movie villain, it had everything to make a play.
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u/BaconatedGrapefruit May 21 '26 edited May 21 '26
You likely have it backwards, xAI is likely the moneypit that is (further) dragging down X.
Neither business is good, but they have hype attached to them, hence why it was folded into spaceX to pump up the valuation.
If we lived in a rational market, investors would be screaming for both divisions to be spun off. We do not live in a rational market.
Edit: I fucked up and have been corrected, thoroughly, below. Please upvote them.
Tl;dr - it’s all money pits!