Elon Musk's xAI Is Spending Nearly $1 Billion A Month As AI Ambitions Outpace Revenue, Internal Documents Show: Report

Elon Musk's AI venture xAI is reportedly amassing significant losses as it spends on infrastructure, talent and software.

xAI Losses Mount As Spending Accelerates

Grok-parent xAI reported a net loss of $1.46 billion in the September quarter, reported Bloomberg on Thursday, citing internal financial documents. 

This is up from about $1 billion in the first quarter. In fact, in the first nine months of 2025, the AI startup spent $7.8 billion in cash.

This comes despite xAI generating $107 million in revenue for the three months ended on Sept. 30. 

xAI is currently spending just under $1 billion a month on investments, the report noted, citing people familiar with the company's finances.

xAI did not immediately respond to Benzinga’s request for comments.

Fresh Funding Keeps xAI Running

Earlier this week, xAI announced that it has closed a $20 billion equity raise, valuing the startup at $230 billion. The investors in this Series E round included Nvidia Corp (NASDAQ:NVDA), Cisco Investments (NASDAQ:CSCO), Fidelity, Valor Equity Partners, Stepstone Group (NASDAQ:STEP), Qatar Investment Authority, Abu Dhabi’s MGX and Baron Capital Group.

Benzinga Edge Stock Rankings place Nvidia in the 94th percentile for Growth and the 98th percentile for Quality, highlighting its standout performance compared to companies like Tesla and others.

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