Elon Musk’s artificial intelligence startup xAI expects to rake in more than $13 billion in annual earnings by 2029, according to financial projections shared by its banker Morgan Stanley and reported by Bloomberg News.
The projection was disclosed to potential investors as part of a $5 billion debt offering, with Morgan Stanley requiring a minimum $50 million investment to access the company's financial details.
Per the Bloomberg report, xAI expects gross revenue to hit $1 billion by the end of 2025 and climb to $14 billion by 2029.
Despite a slow start, with first-quarter 2025 revenue at $52 million and an earnings before interest, taxes, depreciation and amortization (EBITDA) loss of $341 million, xAI anticipates its financial profile to improve dramatically over the coming years. Internal forecasts see EBITDA at $2.7 billion in 2027, jumping to $13.1 billion by 2029.
To support its growth, xAI plans to make massive infrastructure investments, including $18 billion earmarked for data center expansion, following $2.6 billion in capital expenditures already spent.
In addition to the debt sale, the company is reportedly pursuing a $300 million share sale that could value the company at $113 billion.
Separately, talks are underway to raise as much as $20 billion in additional funding, which could place the combined valuation of xAI and Musk’s social media interests above $120 billion.