xAI burns cash fast as losses grow

Artificial intelligence startup xAI is spending more money than it makes, according to Bloomberg. The Elon Musk venture is racing to build data centers, hire top talent, and develop advanced software.

Internal documents show the company posted a net loss of $1.46 billion in the third quarter, up from $1 billion in Q1. In the first nine months of 2025, xAI spent about $7.8 billion in cash.

Despite heavy spending, revenue is growing. Sales nearly doubled quarter over quarter to $107 million by the end of September. 

Executives told investors the focus remains on rapidly building AI agents and software that could one day power humanoid robots like Tesla’s Optimus.

Losses remain deep, with Ebitda negative at $2.4 billion through September. 

To fund growth, xAI raised a massive $20 billion equity round, valuing the company at $230 billion and giving it room to keep investing aggressively.

Meanwhile, Musk’s AI chatbot Grok faces global backlash, as regulators investigate claims it sexualized women and minors, enabled deepfake images, and continues to generate illegal content despite apologies and warnings.