Secured against what?

Exploding rockets.

Oxygen futures

VERY BIG exploding rockets

I mean xAI has a bunch of fixed assets. That’s part of the problem!!!

If they just turned twitter back into twitter and jettisoned everything else it’s worth $20B on a bad day. Not the worst bet if you’re actually first in line.

Our personal information from the government’s databases.

Secured. On shares in subs?

I think it’s just seniority not specific assets but idk.

Most likely. Security of these will be worth less than a bucket of his piss

As long as it gets the same stellar results as SpaceX has this year i don't see why not

Couldn't get the $5B that Morgan Stanley was hawking the very afternoon THE FEUD broke out lmao

I don’t pay attention to corporate junk debt rates but dear god. These ain’t utility bonds

like the Single B high yield index is at 7.2% wtf

Financially illiterate here, what does this mean

The world's richest man is asking to borrow money, and the kind of people who'd sell their own grandmothers for another 0.003% yield are saying they need the GDP of Australia in interest payments every six months to make it worth the risk.

Well explained sir. 🫡

Didn't it come out that xai was burning cash at a rate of 1b/mo?

Reuters reported a few days ago that several investors declined to participate in this round. He still got the funding but it's getting more difficult.

If I post in that format without a disclaimer it's a real headline from Bloomberg and not a joke.

Tried looking for this on web but info sparse. Any rating on this?

Is there a rating below junk? Turd, maybe.

I mean 12.5 is still a joke, just not a joke you’re telling

That's 12.5% fixed rate? Or is it pricing there at like SOFR + 800?

Fixed bsky.app/profile/pear...

Jesus Herbert Christ.

*squinting* ok, right, so this is as safe as cash like mr musk said

does robinhood let retail in on deals that raise for elons companies at credit card rates yet? they should

I am howling at this, we're originating *floating* rate assets at barely 10% coupons these days. Rates have dropped and spreads compressed, calling this "junk" is insulting to the entire concept.

>850bp spread to swaps holy cow that's worse than median CCC by a fair margin.

It's expensive trying to get the AI to say the N word

ctrl-f "groimes subprime" joke not found

Who knew that making Twitter like 40 cents on every dollar of value would make it so hard to raise money??

I mean, probably also a sign that the AI bubble is starting to peak, but Elon's narcissistic stock scams are clouding that view.

Guy burns through cash like he burns through cars, and rockets, and more rockets

That's a mortgage from the Paul Volcker days.

He should try blowing up fewer rockets

Is 12.5% the actual rate or are you just making a joke?

Given CoreWeave is borrowing at 10 feels like a great deal for xAI

Securred against what is the question!

Bunch of H100s and the corpse of Twitter So, a bunch of H100s

The Chinese are going to figure out a way to train leading edge models without H100s faster than he’s going to make his money back on those H100s

Probably the building too.

why does xAI need to pay 12.5%? I guess they’ve done an effective job of siloing exposure to Musk assets?

because they need cash, they're burning it at a spectacular pace.

Musk is burning cash almost as fast as he’s burning his rockets!

It’s amazing they’re able to raise debt at all

If we keep asking grok to think about stupid stuff, we can burn the cash quicker.

I can't believe they have $500M in revenue.

wait, twitter has at most $500m in revenue?

lol

Twitter isn’t so much a tech company as it is an ideological project, it’s not supposed to earn money, just flip votes

just need a little more runway and then they'll start printing cash when they finally figure out how to get grok to say the n-word.

Turning a big dial on the side of the LLM that says “racism” while staring at the output to see if anything happens.

so theyll simply like 10x revenue in two years?

They just need to outpace OpenAI and it’s $30b in spending. What could it cost, Michael? $8b?

"Invest... in customer demand" Lose on every sale sure but don't worry, they'll make it up in volume

lol yeah but I don’t really know how else to describe it from an accounting perspective.

I don't mean to be obtuse, but it almost doesn't matter if your $500m in revenue (*not profit*) comes from $13b in spending or $8.4b. It's fucking hopeless.

Was looking at Google, Jesus, $52.5b in expenditures for a total of $400m in revenue. How does this space end up in anything other than a price war? And how does it go to anyone but the deepest pockets?

Isn’t it part of the X / Twitter group?

Do they have revenue right now?

yes

I am going to be extremely unsurprised when I find out the Twitter debt refinancing was at around that sort of yield.

Managed to get away with a rosier-than-expected implied 11% when the banks finally managed to get that junk off their books recently.

Other way round. (Financial engineering ftw…) www.bbc.co.uk/news/article...

He's doing his money/equity shuffling and trying to get xAi to buy X. Europe is on his ass about it, finally.

www.euractiv.com/section/tech...

Should be much higher imo given (1) liability for unpermitted gas turbines and (2) very recent history of just blowing shit up, major body panels falling off cars, "self-driving" fraud, kill the boer etc

don’t ask questions, just burn money in trash bins

It’s wild that Musk’s plan to save Twitter was to tie it to a cash burning machine with no path to profitability, but what do I know.

well, the long term goal is to have Tesla buy out xAI, on the dubious claim that xAI will power self-driving (the real goal being to bail out Musk’s debt with Tesla investor cash)

it’s just a nesting doll of scams

12.5% jesus christ. that's worse than a small cap borrowing against hopes and dreams.

lmao. My credit card (!!) is under 10%

Bro which one that rocks

Just a dinky local credit union!

that’s the way to go

It's you! You're the small cap!

"Come on down to Crazy Elon's! His note rates are insane!"

Seems expensive, but also doesn’t seem expensive enough. Curious who the largest buyers of this are

Did the government start the Sovereign Wealth Fund yet?

Hard to start that when you’re increasing the deficit, but what do I know?

Why would anybody willingly give him money for anything 😭

He's spending a billion a month on it. That's one quarter of expenses. At a 12.5% coupon, my fucking god.

He better hurry. We’re counting on Elon for this July 4th.

So this will get them a quarter of cash runway?

12%?? Good lord, Elon needs to sell some Tesla stock

Everyone's laughing at the world's most unnecessary billionaire paying Michael Milken rates to keep the lights on, but remember: Grok only needs to invent ONE new form of multiplication where that isn't so much, and BOOM, right back in business!

Like his self-driving car, it'll be any day now!

I initially read this as "Need moar crash", which I suspect will be equally accurate

Same same.