The artificial intelligence startup of Elon Musk, XAI, is spending around 1,000 million dollars per month, due to the high cost of building its models to advance in the field of AI. A amount that far exceeds the limited income of the owner of the Grok assistant, according to internal sources of the company consulted by Bloomberg. The rhythm at which the company is losing money strongly illustrates the unprecedented financial demands of the artificial intelligence industry, especially in the case of XAI, where the income has taken to materialize. To cover that deficit, the Musk startup is trying to raise 9.3 billion dollars in debt and capital, according to the same sources cited by Bloomberg. But even before that money comes to the accounts, the company already has plans to spend more than half in the next three months, they said. During 2025, XAI – responsible for Chatbot Grok – hopes to spend about 13,000 million dollars, according to details shared with investors. As a result, their aggressive financing rounds barely manage to stay at the pace of the expense, the sources added. A spokesman for the company declined to comment. However, Musk responded to a publication in his social network X that referred to the article by saying: «Bloomberg is saying nonsense.» Losses are due, in part, to the huge costs facing all IA companies when building server farms and buying specialized chips necessary to train advanced models such as Grok and Chatgpt. Carlyle Group estimates that by 2030 more than 1.8 billion dollars in capital will have been allocated to develop the AI infrastructure, according to his CEO Harvey Schwartz in a letter to the shareholders. «Model developers will seek debt financing and will burn a lot of money,» said Jordan Chalfin, a senior analyst and chief of technology in Creditsight technology. «The space is very competitive and are struggling for technical supremacy.» Even so, XAI has had difficulty generating income to the rhythm of competitors such as OpenAi or Anthropic. If almost none of these companies publishes official figures, Bloomberg previously reported that Openai – Chatgpt's crest – hopes to enter 12.7 billion dollars this year. On the other hand, XAI projects revenues of just 500 million dollars in 2025, with an increased increase to more than 2,000 million next year, as they were told to investors. What is in its favor Xai is that its CEO, Elon Musk, is the richest man in the world and has proven willing to be willing to invest his fortune in large -scale futuristic projects, even before they generate profits. In 2017, Bloomberg reported that Tesla, his largest company at that time, burned 1,000 million dollars per quarter to finance the production of Model 3. Spacex also accumulated years of losses while pursuing his goal of exploring other planets. Even so, XAI's losses even stand out within that context. The XAI team, which competes for developing an AI that is up to human capabilities, believes that it has advantages that will allow you to reach your rivals. While some competitors rent chips and space in servers, XAI is buying a good part of that infrastructure on their own and has direct access to it thanks to X (formerly Twitter), which had already acquired a large number of high performance computer chips. Musk has said that he expects Xai to continue buying more chips.
The «Factor X»
After recently merging with X, Musk's executives are confident that they can train their models with the vast and updated social network files, instead of paying for data sets such as other AI companies. These possible advantages have led Xai to project with optimism that will be profitable in 2027, according to people familiar with the matter. Bloomberg previously reported that Openai hopes to have positive cash flow in 2029.The projections, along with the fame and political influence of Musk, have been enough to attract many investors, especially before the recent deterioration of the relationship between Musk and former president Donald Trump. The possible investors of XAI were told that the company's valuation grew to 80,000 million dollars at the close of the first quarter, from 51,000 million at the end of 2024. Among the investors are Andreessen Horowitz, Sequoia Capital and Vy Capital. Now, Xai runs counterreloj to raise enough money and hold their high level of spending. From its foundation in 2023 to June of this year, XAI had raised 14,000 million in capital, according to people aware of their finances. Of that amount, only 4,000 million remained at the beginning of the first quarter, and the company hoped to spend almost all that money during the second quarter, they said. And that adds to the 5,000 million in debt that, according to Bloomberg, Morgan Stanley is helping to get. This corporate debt is expected to finance the development of XAI data centers. Other companies have opted for specific financing per project. The company also hopes to receive a reimbursement of 650 million dollars from one of its manufacturers, according to investors this week.
