US EditionElon Musk’s xAI Burns Through $1 Billion a Month as Costs Pile Up: Bloomberg
- Elon Musk's AI startup xAI is spending about $1 billion per month in 2025 while developing its AI models and chatbot Grok.
- Founded in 2023, xAI faces intense costs and lagging revenues compared to competitors like OpenAI, prompting an urgent $9.3 billion fundraising effort.
- The company had roughly $4 billion cash at the year's start, plans to finalize $4.3 billion in equity funding, and seek $5 billion in debt this year.
- XAI expects to burn through $13 billion in 2025 with revenue around $500 million, while Musk aims for profitability but the path remains uncertain.
- The startup's heavy spending amid investor caution illustrates the AI industry's financial pressures and raises questions about xAI's long-term viability.
19 Articles
19 Articles
Musk’s xAI Burns Through $1 Billion a Month as Costs Pile Up
Elon Musk’s artificial intelligence startup xAI is burning through $1 billion a month as the cost of building its advanced AI models races ahead of the limited revenues, according to people briefed on the company’s financials.
The CEO of Tesla and SpaceX is having a hard time, going back to his electric car company to try not to sink his other company dedicated to artificial intelligence.
East Bay Times
The Mercury newsElon Musk’s xAI burns through $1 billion a month as costs pile up
By Carmen Arroyo and Jill R. Shah, Bloomberg Elon Musk’s artificial intelligence startup xAI is burning through $1 billion a month as the cost of building its advanced AI models races ahead of the limited revenues, according to people briefed on the company’s financials. The rate at which the company is bleeding cash provides a stark illustration of the unprecedented financial demands of the artificial intelligence industry, particularly at xAI,…
The tycoon's startup is trying to raise $9.3 billion in debt and new investments
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