xAI expects $13 billion losses in 2025 with just $500 million revenue

Bloomberg reports that Elon Musk's AI startup xAI is currently burning through about $1 billion every month. The main drivers are steep infrastructure and chip costs for building its Grok chatbot. According to Bloomberg's sources, xAI expects to lose $13 billion in 2025 while bringing in just $500 million in revenue. The company is aiming for profitability by 2027. To keep operations running, xAI is planning a $4.3 billion capital raise and is also seeking $5 billion in debt. In total, the company wants to bring in $9.3 billion, with more than half of that expected to be spent within the next three months. At the start of the year, xAI still had about $4 billion in cash. Compared to competitors like OpenAI, which expects around $12.7 billion in revenue for 2025, xAI is lagging far behind in monetization.