XAI burns a billion dollars a month, nothing stops Elon Musk in the AI race
Information of Bloomberg comes from “People familiar with the conditions of the agreement who asked to remain anonymous because the information is private”. The company always lifts colossal sums from investors to maintain flows in its cash.
XAI performs monumental funds
Bloomberg reports that at the moment, XAI is finalizing new equity funds for $ 4.3 billion. The company plans to raise an additional $ 6.4 billion in 2026.
A amounts that are added to the five billion dollars in debt that Morgan Stanley helps lift. The corporate debt will finance the creation of data centers for XAI. Other companies help finance the project.
Silicon Valley venture capital companies invest massively in XAI. Despite these “Prolific fund collection efforts”,, Bloomberg specifies that the company “Barely follows the pace of expenses” Because of these monumental liquidity consumed every month.
XAI’s main contribution remains Grok, Chatbot which was notably used during the demonstrations in Los Angeles. The company merged with X, earlier this year. XAI hopes to use social network data to constantly feed Grok.
XAI is an exception in the AI race. Elon Musk’s company faces major competitors like Openai, Anthropic or Meta, to establish himself as the market leader.
Elon Musk made major promises about the future capacities of his businesses in terms of automation, robotics and generative AI. The billionaire estimates that his business will create a range of domestic robots that will be able to manage household tasks. Man also aims to launch his service Robotaxis who are not so autonomous as that.
