Quick Read – Grok Is A Loser – Investment In Grok Extends Into Billions – IPO Money Will Get Eaten By Tremendous Competition – The analyst who called NVIDIA in 2010 just named his top 10 stocks and Microsoft wasn’t one of them.
Morningstar warned, “‘Financials Look Reckless’: Lifting xAI’s Hood in the SpaceX IPO”. Its AI division, xAI, lost $2.47 billion on $818 million in the first quarter of this year. “If you compare xAI to a traditional SaaS company, the financials look reckless,” Harrison Rolfes, a senior research analyst at PitchBook, wrote. That may be a stretch, but it makes a point.
The most damning comment about iAI and its anchor product, Grok, was from Reuters. “But xAI’s Grok chatbot has been a flop with one of the world’s largest customers – the U.S. government, according to seven federal employees, three contracting experts, and a Reuters review of government AI inventory documents.” That is only one of several points showing that Grok is in trouble. The analyst who called NVIDIA in 2010 just named his top 10 stocks and Microsoft wasn’t one of them. Get them here FREE.