I cannot wait for the AI bubble to pop.
A proposed class-action lawsuit brought by former Twitter shareholders against Elon Musk can move ahead in federal court in New York, a judge ruled Friday.
The tech centi-billionaire had sought to have the case, Rasella v. Musk, dismissed.
Plantiffs said they lost money when Musk was snapping up shares of publicly-traded Twitter ahead of a buyout, but failed to disclose his stake within a legally required time frame.
Sounds like he’s protecting his Tesla shares. They were used to secure his loans to buy Twitter and if Tesla keeps falling the loan could be called, so he’s using xAI to pay off the loans by buying Twitter at what’s pretty much an inflated price. Not great for xAI’s balance sheet, but who cares?
Now that makes sense (for Musk).
Some news I like:
The Digital Services Act allows fines of up to 6 percent of a company’s total worldwide annual turnover. EU regulators suggested last year that they could calculate fines by including revenue from Musk’s other companies, including SpaceX. Yesterday’s NYT report says this method is still under consideration:
Unlike Google, Meta, Apple and Amazon, which are publicly traded, X is owned solely by Mr. Musk. EU regulators are considering using a piece of the law that lets them calculate a fine based on revenue that also includes other companies Mr. Musk privately controls, like his rocket maker, SpaceX. That increases the potential penalty to well over $1 billion, one person said.
The NYT report said it’s possible the EU and X could reach “a settlement if the company agrees to changes that satisfy regulators’ concerns.” But there is also a separate EU investigation in which regulators “are building a case that X’s hands-off approach to policing user-generated content has made it a hub of illegal hate speech, disinformation and other material that is viewed as undercutting democracy across the 27-nation bloc,” the report said. This second investigation reportedly could lead to additional penalties.