Overview

• xAI is in talks to secure $4.3 billion in equity financing after burning through most of its previous $14 billion funding and holding $4 billion on its balance sheet at the end of March.
• The company has launched a $5 billion debt offering led by Morgan Stanley, split between floating-rate loans and fixed-rate bonds yielding up to 12%.
• xAI is spending about $1 billion per month and projects total expenditures of $13 billion for 2025 as it scales its AI infrastructure.
• The startup’s valuation rose to $80 billion in the first quarter, up from $51 billion at the end of 2024, underpinning investments in its 200,000-GPU “Colossus” supercomputer.
• xAI forecasts revenues of $500 million this year and $2 billion next year and aims to reach profitability by 2027, bolstered by a potential $650 million hardware rebate.