Forum: 1 Lucky Nerd

$5 Billion for Elon Musk

From Joseph Pereira@1:124/5016 to All on Thursday, June 12, 2025 06:19:39

The bank Morgan Stanley has taken on the task of raising five billion dollars from investors to finance xAI.

With this third-party money, Elon Musk aims to secure a prominent position in the AI market as well.

You might wonder: why not use his own money? After all, Elon Musk is rich enough.

However, this is much smarter. Elon Musk isn't putting in his own money. He's getting money from others while only giving away a fraction of what is currently an almost empty company. If it's a success? Great, then he still holds the majority of the shares. If it fails, Elon Musk doesn't lose a cent.

A very clever move.

The large investors still have no problem investing in Elon Musk's projects. After all, they aren't investing their own money either. It's your pension money that will ultimately be deployed with Elon Musk at a potentially low profit percentage. All the intermediary institutions will make a profit no matter what. If it goes wrong, it's a setback for your pension fund.

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