🖼 The costs of xAI under Elon Musk are continuously rising. It is reported that it consumes 1 billion US dollars per month.

The Costs of Elon Musk's xAI Keep Climbing, Reportedly Consuming $1 Billion per Month

Elon Musk's artificial intelligence startup, xAI, is seeking to raise $9.3 billion through debt and equity financing. However, according to the deal terms shared with investors, even before the funds arrive, the company plans to spend more than half of that amount in the next three months.

The speed at which the company raises and consumes funds vividly demonstrates the unprecedented capital demand in the artificial intelligence industry and the relatively meager revenue so far, at least for xAI.

People familiar with the matter, who requested anonymity as the discussions are private, revealed that based on the company's leveraged cash flow, xAI, which is responsible for developing the AI chatbot Grok, is expected to consume approximately $13 billion in 2025, that is, more than $1 billion per month. These people added that this means the company's frequent fundraising activities can barely keep up with its spending pace.

A spokesperson for the company declined to comment.

via cnBeta.COM - Chinese Industry Information Website (author: Source: Global Market Report)