xAI *Cancelling* Pay | Out of Money?!??!

XAI may be going bankrupt and or ending

its creator monetization program soon

because they burning money hand over

fist and it ain't good. That's at least

according to internet rumors and what

people are saying on social media. So,

it could all be totally wrong. But in

this video, we're going to report on

those rumors and we're also going to

provide some sus evidence that kind of

makes people start scratching their head

going, "Oh man, the clock time might be

running out over here." So, first

exhibit I'd like to point you to is

this. Here's this guy named Zooie Zoom.

Okay, Zooi Zoom literally has a tagline

that's chief viral SH9T poster at X and

quote just a VC text tech bro living in

an AI slop world.

Right. So apparently the guy was

complaining that he got 173 million

impressions and only made $1,500.

So the guy was pissed that he didn't

make more money.

And after being a subscriber of Nikita

Beers,

Nikita, who is the head of product at X,

writes, "Check again." And then what

happens? Magically $10,000 appears in

Zumi Zoom's account.

And Zumi goes, "Oh my gosh." Well, holy

f is actually what he wrote. And Nikita

says, "Don't spend it all in one place."

almost clearly and directly taking

ownership, almost like a parent giving

their child a $50 bill for a date night

with their new girlfriend. And it's

like, don't spend it all one place,

honey. So, obviously, the head of

product and Nikita is taking ownership

for directly depositing $10,000 into

Zooi Zoom's account after he complains

and tags Elon Musk that he wasn't paid

enough for his viral SH9T post. He also

has a tag, the Kelshi tag here, which

suggests that hey, you're in that VC

circle, you're in that fundraising

startup world, and you're connected to

people who are basically bailing out X.

Okay, that gets to the next point.

Nikita who is the head of product at X

is also an adviser at Salana and a

venture partner at Lightseed and an

ex-founder of some other apps. So very

well connected in the venture space and

this is nothing to say that's bad about

Nikita.

It is however to say that this person is

clearly very involved in the XAI

monetization loop not only for creators

but also likely the biggest source of

expenses next to Jensen Wong's Nvidia

chips uh for X. And it might be exactly

why there's now talk about ending the

monetization program because it's likely

that the monetization program is too

expensive for X. Imagine, for example,

if GPT was sending out a lot of money to

all of their users. They're already

burning a ton of money on chips and now

all of a sudden they're burning money

paying out creators. And so what you got

was this post at the end of September

from Nikita that says, "At this point, I

think creator payouts do more harm than

good. We need to off-ramp to a different

system."

Okay, this is really interesting. So

it's not saying that the monetization

program is dead, but literally the guy

who's capable of directing monetization

payments is like, you know, this

monetization program isn't that good.

And this is leading to a lot of debate.

A lot of people are like, you know what,

that's right. We shouldn't have to

incentivize people to post because then

they're just going to try to engagement

farm. Like, you know, people will post

up these posts like, "What do you notice

about this picture of Taylor Swift's

thighs?" And it's just pure engagement

farming. Like, it's not providing any

value at all. Right? But that gets a lot

of engagement, which gets monetization.

The stuff I post doesn't get a lot of

engagement. Like here, Modi assured me

today India will not buy Russian oil.

Now we need to get China to do that too.

Or drug cartels have world class very

fast speedboats says Trump but they're

not faster than missiles and I'm like

damn that's kind of badass, right? Or

like earlier I'm just like who's dumping

the stock market was selling off

briefly. Or like this one I'm literally

shaking with excitement over what my

legal tech broker and crypto team just

revealed we are launching with house

hack/reinvest soon. Total game changer

for real estate real world assets

tokenization and reinvesting. Stay

tuned. I'm going to make my boy Vlad

jealous. I get, you know, 127 likes. 128

there. I was born on 128. So, it's kind

of cool, right? Where do you get all the

time to do this? The Meet Kevin

membership, of course. On which

blockchain? We, by the way, are talking

like a lot of people have hit me up

after I mentioned Salana, Ethereum, XRP,

all being considered. Even Cardano was

considered there for a moment. Uh, yes,

by the way, Houseack is owns Reinvest.

Um, and there's some there are some

questions here about tokenization and

stuff. Anyway, that that's all totally a

topic for a different video. Sorry, I

get on these tangents, but anyway, the

point is this guy's a VC bro. And VCs

are the ones who are funding the snot

out of XAI right now. And so when a VC

bro complains, what a surprise. They get

a direct subsidy. But what's actually

going on? Like who actually runs the

fundamentals and the finances at X?

Well, according to the Wall Street

Journal, the people who run the

financials at X are actually just Elon

Musk's family office.

So now Elon's attorneys are pissed about

that. They don't want that coming out.

But apparently the people who oversee

Elon Musk's financial operations, his

personal family office, are the same

people who run the financials at XAI.

And there are complaints that there is

no formal chain of command. Probably it

just goes through them and then Elon.

It's almost like a piggy bank basically

for them, but at this point it's just a

money losing piggy bank. Uh and and

these people have been

directors and still are of Elon Musk's

family office. There are a lot of fears

that

Elon's got to do whatever he can to keep

the ship alive because this is his tool

for fighting Sam Oldman. So whatever

needs to be done to keep venture

capitalist happy is what they're going

to do. And maybe that's why we saw that

payment to that creator cuz X is fine.

Look, we can pay you 10 grand. But on

the other hand, we probably need to shut

down this program because we're paying

too people too many too much money. Now,

why is there talk about potential

frustration? Also, well, remember Linda

Yakarino left. She's the CEO of X.

Remember when Grock went all

anti-Semitic? Yeah, Linda Yakarino

bailed on that. I think now it's like

the opposite of anti-Semitic. Yesterday

I actually got in a debate with Grock

and it was like super pro-Israel and

anti-Hamas and like I was just trying to

share like facts because I was trying to

educate my son on like how many children

died in Gaza and I'm like look this

number could be wrong you know it could

be half as much or a third as much but

even if it's anywhere close to this

number it's still terrible. I asked my

son how many kids are in your class and

he's like 24. And I'm like did you know

that in the 2-year war in Gaza a

classroom per day of children was

killed? a classroom per day of children

was killed. So, I mean, this is just my

opportunity then to go, "So, don't tell

me you're having a bad day, son." Like,

we got to be grateful for what we got

going on here, cuz that's freaking

terrible. I'm like, 50 mommies and

daddies died a day in Gaza, and don't

tell me they were all Hamas. Hamas is a

scumbag, shipbag group of terrorists,

but don't tell me they were all Hamas.

But we don't have to go into that. We

just have to be grateful that right now

there's peace hopefully for now. and

hopefully it lasts long. And this isn't

an Israel topic, right? Like I have no

bone to pick with anybody unless you're

a murderer or a terrorist. I hate that.

Again, what matters here is that a lot

of people are worried that X is

blatantly running out of money. And so

this is where we go X, are they audited?

Because X is burning through about a

billion dollars per month. They're

hoping to make $13 billion by 2029.

That's what they're hoping to make in

income by 2029. That's four years down

the road. But that's only because I

think Morgan Stanley is kind of forcing

them to put together some kind of

projection because otherwise they

wouldn't end up getting investors. So

you just Google like 13 billion, Elon

Musk, XAI, and then do um you know a

Bloomberg story in Morgan Stanley. This

is it's very simple. Like the banks,

they don't care

what the investment is. They just want

you to make the investment so that way

you could turn around and sell it. Like

the bank just wants to make the fees,

get people on the Morgan Stanley

platform and make the fees. Here it is.

Beyond a frenzy around Beyond the Frenzy

around an AI as of late, internal

numbers the bank revealed to a select

group of investors Thursday show a

company that anticipates generating $13

billion of annual revenues by 2029.

Okay. In four years, XAI hopes to make

as much money as OpenAI is literally

earning right now. Open AAI hits 12

billion in annualized revenue and it's

expected to be more than that. They're

probably already at 13 billion ARR right

now. In four years, Grock expects to be

up at that level. So, Grock's like 20

times behind OpenAI. And then Anthropic,

you know, they just actually had a story

that came out. Where was it? Anthropic.

Look at this. Anthropics revenue just

hit 9 billion annualized by the end of

2025.

That's probably also like 10 to 15x what

Grock is doing. So, it's no surprise

there's a little bit of a scramble here

to raise money. Now, what I want you to

see is what's going on with audits and

financials. So, Alex, the uh personal

attorney of Elon Musk, he says that X is

audited by PWC.

Technically, private companies don't

have to be audited. So, they're like,

"Well, we're audited, so it's good."

Okay, that's true. If you do regggd

offerings, you know, to accredited

investors, you don't need audited

financials. Now, if you raise from

unacredited investors, like what we do

at House Hack, you go to, you know,

househack.com and you're like, "Yeah, I

want to invest in House Hack because

it's backed by real estate and, you

know, we've got the AI coming out or

whatever." We're going to be updating

the website with like real screenshots

here of our AI. It's going to be like

you start showing the screenshots of

some of our AI. It's going to be pretty

sick. But anyway, what's remarkable is

when you raise money from nonacredited

investors, you have to get audited

financial statements. So, our financial

statements are audited, but we actually

chose to go a step further. We get what

are called PCAOB

audits. These are like the medallion

standard for audits. They're IPO grade

level audits. They're really, really

hard to get and they're a pain in the

butt and they're expensive, but it's

good. It keeps everyone honest and

that's what I want, you know? Like, I'm

a YouTuber, okay? I always look, I go,

man, I got to go like one step further

than everybody else to make sure

everything's just like above board

because people are like, he's a

YouTuber. You know, that still has like

a negative connotation to people. But

anyway, so the interesting thing is the

attorney for XAI says that they have PWC

audits, but what's interesting is PCAOB

has sanctioned aka find PWC on multiple

occasions for failing to meet quality

and independence standards.

So in other words, the audits we get at

my little baby startup house hack are

not only way better than what XAI is

doing with their financials, but the

entity that does these IPO grade audits

and certifies accounting firms to be

able to say they do PCAOB audits is

basically saying the same company that's

auditing X AI is

Okay, I we're just going to put pieces

of the puzzle together here. You got to

make your own conclusions. We're just

putting the pieces of the puzzle on the

table. Now, understand some of the

fundraising here, okay? And I wrote this

all in the Me Kevin app. Remember, you

can download the Me Kevin app for free.

So, in the Me Kevin app, I wrote here's

some of the prior funding rounds, prior

funding. 6 billion series B in May of

2024, 6 billion more in December of

2024. They probably burned all of that

money in 2024. Then they did a $10

billion mid2025 round which that's the

very same deal that Elon Musk denied as

fake news and then 30 days later they

did the deal. This is kind of similar to

when Elon Musk is like oh fake news that

the lower cost Tesla is cancelled and

then it's like hey guys the lowerass

cars Tesla are cancelled. It doesn't

make sense to make the lower cost car.

Okay Elon. So anyway, I think this is

why I don't get a lot of views on X

because I just I just dump on like the

truth, you know? Like I'll even dump on

myself. Like the truth is really what

matters in my opinion. And so I dump on

everyone. I don't care if it's Biden or

Trump or everyone. But if I like

something you do, I'll call it out too.

But anyway, then all of a sudden there's

like this emergency $2 billion

investment from SpaceX, which is really

weird because SpaceX doesn't invest in

other outside companies.

So I guess the 10 bill wasn't enough.

And now all of a sudden we got to get

another $2 billion investment from

SpaceX. And then we just got a $20

billion money raise

from Nvidia, Seoia, Lighteed, that's

where Nikita works. Seoia, Fidelity,

Black Rockck, Tribe Capital, blah blah

blah. And at the end of 2024, they were

only reporting $100 million of annual

recurring revenue. Probably like 500

million now, maybe. Hopefully. I mean,

that's still good, but it's nowhere near

what they're spending. But this last

round is not even just equity anymore.

Companies are like, "No, no, no, no. We

want you to pay this back." It's

actually mostly debt. $12.5 billion of

debt, $7.5 billion of equity.

So, now this is where things get really

interesting. Elon Musk comes up with a

stock comp plan and invests some money

into Tesla, propping up Tesla stock. He

basically propped up Tesla stock by the

tune of about $100 a share after that

sort of enthusiasm, right? I mean, we

and we were tracking the technicals of

this for a while. We were like, "Holy

smokes, if we break out of 347, you

know, we kept bouncing off 318 over

here." I'm like, "If we break out of

347, we're going to 414." We've been at

414 over and over and over and over

again. This is the technical analysis we

do in the Mev membership every day

before the market opens up. You can use

coupon code Schumer siesta and join, you

get lifetime access. pay once, you get

lifetime access. But what's remarkable

here

is Elon Musk kind of wants to pump the

stock because he wants shareholders to

approve Tesla investing in XAI.

So in other words, let's take every

potential cash flow avenue like Tesla

stock which is public or SpaceX which

has a lot of investors in it. I mean my

venture capital company has exposure to

SpaceX. I think we're doing really well

on it. I love SpaceX. I love my

Starlink. But anyway, we're now going to

take money from those entities and feed

X because we really need to fund

Colossus 2. Now, Colossus 2 is

supposedly

going to end up generating uh or or

buying somewhere around 300,000 Nvidia

chips, but then Elon Musk updated that

to 550,000 Nvidia chips, and then it was

updated to maybe even be a million

Nvidia chips. So, nobody really knows.

All I know is with the post that I post

on X, I get like $63 a pay period here

on X. So, I'm really not posting on X

for the money. And I I for like two

years paid for the yellow check mark

because I was a big fan of like, hey,

I'm going to support, you know, free

speech or whatever. But, you know, then

I then I get a little nervous when I see

stuff like this and I'm like, man, I

really feel like I'm paying.

And

you're not actually seeing the promotion

of free speech. You're kind of seeing

the promotion of selective free speech

cuz anybody who says anything bad about

Elon or like even remotely critical of

Elon, their views go to crap on X.

Maybe not surprising. Now Anthony

Scaramucci cuz you know this is a

trustable face says that the X AI merger

feels inevitable. Cool. Awesome. Yeah,

it's fine. And then of course the says,

"But don't worry, we are blowing up on

user downloads for X, right?" And then

when we're asked, okay, which countries

globally? Yes. So how many of those are

bots? The Xbox problem is problematic.

YouTube has actually gotten a lot better

at dealing with the bots than X. And

Elon bot X promising to get rid of the

termites,

the bots.

Uh yeah. So, I mean, when you put all of

this together, can we say definitively

that X is bankrupt? No, of course not.

Can we say definitively that X is

getting rid of its monetization program?

No, of course not. There's no evidence

of that. That's like just clickbait

drama circulating on the internet. But

the reality is, are there probably

financial concerns? Like, are they are

they leasing a lifestyle they can't

afford buying all these Nvidia chips?

Probably yes. Now, is that why Jensen

Hang's like, "I love Elon. I wish I

could have more Elon in my life." I

mean, to me, this is literally like the

casino manager from Full House who sees

a rich client walk in and they're like,

"Welcome to the Hotel Alibaba and Casino

First Classroom. Please spend your money

with me." Oh, I love you. It's sort of

like the guy's just trying to sell his

casino. J is just trying to sell his

chips. And you gotta give Jensen credit.

He's a bad A for being a great

salesperson of his chips. I don't even

have a chip on my shoulder over that. I

got Invidia stock, too. I keep telling

people in my membership, I'm like,

"Watch, I'm, you know, you're going to

know as I'm trimming Nvidia stock.

You're going to get the alerts

and I'm going put it into other

investments and you're going to get to

see it all." Now, obviously, I can't

give you personalized financial advice,

and I can't guarantee any of the

information in this video because, you

know, who knows, before I know it, I'm

going to get a letter from Alex and

they're going to be like, "We're gonna

we're gonna sue you for for revealing

this stuff." You know, it's sort of like

the same kind of like bully pulpit stuff

that goes on. Like there's literally a

guy going, "Everybody who made a a bad

video about Binance FUD. Uh, you better

delete your posts otherwise uh uh you're

going to get your name on a big list and

we're going to identify you as spreading

FUD and we're going to hand you over to

Binance to sue you." Basically, he's

been talking about this for days about

like wanting to sue people and stuff.

So, I made sure to jump into here. Like,

you literally have people who are

posting deleted mine. and he goes,

"Thank you." I see Altcoin Gordon got

wise and deleted all. Yep. He didn't

have a choice. He was at the top of the

list. And this is the kind of censorship

that's going on here. So then I reply

and I write, "Make sure you add me to

your list, you weeny bitch." And then I

link, "Here's my fear, uncertainty, and

doubt video on Binance." Cuz I hate fi

Binance.

I don't trust the guy as far as I could

throw him.

So bring it on.

But um yeah, there you have it. So,

thanks for watching and we'll see you in

the next one. Goodbye and good luck.

>> Why not advertise these things that you

told us here? I feel like nobody else

knows about this.

>> We'll we'll try a little advertising and

see how it goes.

>> Congratulations, man. You have done so

much. People love you. People look up to

you.

>> Kevin Praath there, financial analyst

and YouTuber. Meet Kevin. Always great

to get your take.