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[return to "xAI joins SpaceX"]
1. eduard+tq[view] [source] 2026-02-02 23:31:30
>>g-mork+(OP)
From the Big Short (movie)

Jared Vennett (narration): "In the years that followed, hundreds of bankers and rating agency's executives went to jail. The SEC was completely overhauled, and Congress had no choice but to break up the big banks and regulate the mortgage and derivatives industries."

"Just kidding. Banks took the money the American people gave them, and they used it to pay themselves huge bonuses, and lobby the Congress to kill big reform. And then they blamed immigrants and poor people, and this time even teachers."

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2. Fogest+Ku[view] [source] 2026-02-02 23:50:47
>>eduard+tq
I feel like without adding some commentary with these quotes this comment lacks enough info to see how it relates to the linked article.
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3. crysta+pw[view] [source] 2026-02-02 23:58:09
>>Fogest+Ku
Because this move is entirely financial engineering to hide losses just like the roll up of X in to xAI.

None of this has anything to do with business or innovation. Do you not immediately see that? Most of my friends reaction to this news was that this is so obvious it's almost funny (or actually it is funny, since most were laughing as they read the headline).

I'm curious how you could not understand the relevance of the quote unless you were aggressively trying to not understanding it.

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4. CGMthr+wD[view] [source] 2026-02-03 00:41:12
>>crysta+pw
What are they hiding that wasn't hidden already? Two private companies making a private transaction.. there is no mandatory reporting now nor after this move
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5. rubyn0+aJ[view] [source] 2026-02-03 01:18:05
>>CGMthr+wD
Because X and xAI are both losing money. X needed cash to operate, so Elon rolled it into xAI to use xAI’s cash to help fund it. xAI is likely burning egregious amounts money, but will have trouble raising more capital. By rolling it into SpaceX he further covers up the financial issues because SpaceX is actually profitable. He can then raise more capital without having to worry (for a while) about how awful the burn is…

I, by and large, have a strong dislike of Musk to put it mildly. The one thing I will give him, and I think this is his real gift, is he’s absolutely brilliant when it comes to raising capital. He has proven to excel at raising capital, and deploying it well, for extremely capital intensive businesses. I do however wonder if the chickens are coming home to roost because both X and xAI are extremely unprofitable.

I think it’s almost inevitable we will see Space X and Tesla merge. The conditions of that merger will, I believe, say a lot about whether this move was brilliant or batshit.

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