Elon Musk’s artificial intelligence venture, xAI, has burned through nearly $8 billion in cash in just nine months, according to internal documents seen by Bloomberg.
The report lays bare the scale of spending behind the billionaire’s latest attempt to muscle into the increasingly crowded AI arms race.
The company, founded last year as a counterweight to OpenAI, posted a net loss of $1.46 billion in the third quarter of 2025, up from a $1 billion loss in the previous three months.
Revenue, while growing quickly, remains relatively modest at $107 million for the quarter ending in September.
The spending highlights the eye-watering costs of building cutting-edge generative AI.
Most of the outlay has likely gone into securing high-performance chips and the talent required to train large-scale language models, two of the most expensive inputs in the industry.
Despite the ballooning losses, investor appetite remains strong. xAI announced this week that it had raised $20 billion in a Series E funding round, exceeding its initial $15 billion target.
The fresh capital is expected to be funnelled into model development and the expansion of Musk’s AI-focused computing infrastructure.
xAI is positioning itself as a rival to OpenAI, the Microsoft-backed firm behind ChatGPT, though it remains unclear how its technology stacks up.