Elon Musk's AI startup xAI is reportedly burning $1 billion each month as it struggles with high operational costs while awaiting revenue growth. The company seeks to secure $9.3 billion in funding, but intends to spend over half within three months of receiving it. Projected expenditures for 2025 suggest a cash burn of approximately $13 billion. The financial challenges reflect broader industry trends, as AI companies face substantial investments in infrastructure and resources, with estimates indicating over $1.8 trillion will be needed by 2030.
Elon Musk's startup xAI is burning through $1 billion a month due to high costs of building advanced AI models, facing slow revenue generation.
To address its cash flow issues, xAI is attempting to raise $9.3 billion in debt and equity but plans to spend over half of it within three months.
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