"Anthony Armstrong will helm finance at both xAI and the social media service X, the newspaper reported, citing people familiar with the matter. The executive, who helped Musk complete the $44 billion acquisition of the former Twitter, will take up responsibility for nursing the social media platform back to financial health, the FT reported. Armstrong was one of Musk's lieutenants during the billionaire's stint at President Donald Trump's signature cost-cutting effort, the Department of Government Efficiency."
"Musk's xAI raised funds at a $200 billion valuation just last month, making it one of the world's most valuable startups. The billionaire has sought capital as he tries to keep pace in a heated race that's seen companies like OpenAI, Alphabet Inc. and Meta Platforms Inc. spend tens of billions on data centers. Musk, too, has spent aggressively in those areas."
"Bloomberg News reported earlier this year that xAI is losing $1 billion per month because of high infrastructure costs. Meanwhile, his social network X posted a sales decline during the second quarter from the first, suggesting it's struggled to build on the spending that rushed in when Musk was at the center of US politics."
Anthony Armstrong, a former Morgan Stanley executive, has been named chief financial officer of xAI and the social media service X. Armstrong helped complete the $44 billion acquisition of the former Twitter and will be responsible for nursing X back to financial health. xAI raised funds at a $200 billion valuation and is spending aggressively on AI infrastructure, reportedly losing $1 billion per month due to high infrastructure costs. X posted a second-quarter sales decline from the first quarter. Armstrong joins amid management tumult including recent departures of xAI CFO Mike Liberatore and X CEO Linda Yaccarino.
Read at www.mercurynews.com
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