Report: Investors got a peek at xAI’s books and it’s losing money, burning cash
Bloomberg is reporting that prospective investors for a debt offering got a little peek into how Elon Musk’s xAI business is doing.
It appears to be following the AI startup playbook: lose money and burn cash. According to the limited, unaudited numbers that Morgan Stanley shared as part of a $5 billion debt offering, xAI pulled in $52 million in gross revenue and lost $341 million before EBITDA.
Compared to its AI peers, those numbers aren’t great. OpenAI is reported to be expecting $12.7 billion in revenue for 2025, while Anthropic is estimated to be pulling in $2 billion for the year. Bloomberg reported that xAI is anticipating $1 billion in gross revenue by the end of this year.
Another page from the AI startup playbook says shoot for the stars, and xAI is predicting it will have $13 billion in annual revenue by 2029. The numbers also revealed that the startup is planning on spending $18 billion for future data centers.
Compared to its AI peers, those numbers aren’t great. OpenAI is reported to be expecting $12.7 billion in revenue for 2025, while Anthropic is estimated to be pulling in $2 billion for the year. Bloomberg reported that xAI is anticipating $1 billion in gross revenue by the end of this year.
Another page from the AI startup playbook says shoot for the stars, and xAI is predicting it will have $13 billion in annual revenue by 2029. The numbers also revealed that the startup is planning on spending $18 billion for future data centers.
