Elon Musk’s sale of X to xAI just made fraud lawsuit a ‘lot spicer’

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Source: Bryan Rosenblatt“This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach,” he said, adding:“This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.”However, Cochran claimed that “Musk used his pumped up xAI stock to pay multiple times over value for X, but still take an $11B loss on the transaction.” He said that Musk is “screwing over xAI investors, and X investors” and was executed to sell user data to xAI.

The transfer of ownership of X to xAI on March 28 means that the class-action lawsuit against Musk — accusing him of defrauding former Twitter shareholders by delaying the disclosure of his initial investment in the social media platform — has become “a whole lot spicer,” Cinneamhain Ventures partner Adam Cochran said in a March 28 X post.

Acquisition may open up xAI to more ‘exposure’On the same day that Musk said “xAI has acquired X in an all-stock transaction,” a US judge reportedly rejected Musk’s attempt to dismiss the lawsuit.

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Author / Journalist: Cointelegraph by Ciaran Lyons

Category: Crypto

Markets: United States

Topics: Billion Cochran Platform Grok Investor Musk Lawsuit Media Billionaire Elon Social

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-03-29 @ 01:02:49 (2 days ago)

News Timezone: GMT -5:00

News Source URL: cointelegraph.com

Language: English

Article Length: 428 words

Reading Time: 3 minutes read

Sentences: 14 lines

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Copyright Owner: © Coin Telegraph

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