According to AIbase, Elon Musk's AI startup xAI is burning cash at an unprecedented pace. Internal documents show that xAI had a net loss of $1.46 billion in the third quarter ending September 30, 2025, which is significantly higher than the $1 billion loss in the previous quarter. Although its quarterly revenue doubled to $107 million, the company has spent a cumulative $7.8 billion in cash over the first nine months of last year. In response to the loss figures, xAI briefly countered with "Traditional media is lying."

Grok, Elon Musk, xAI

Currently, xAI's main focus is rapidly building AI Agents and related software, with the ultimate goal of providing underlying technical support for humanoid robots, including Tesla Optimus. To support the costs of building a large computing center and hiring talent, xAI's fundraising efforts are also accelerating. This round of Series E funding ultimately raised 2 billion dollars, far exceeding the initial target of 1.5 billion dollars, with strategic investors including NVIDIA and Cisco.

Although the annual loss far exceeded the initial projected 2.2 billion dollars EBITDA, the massive fundraising means that xAI has accumulated sufficient resources to continue investing in the AI arms race.