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3w ago

xAI Reports $1.46 Billion Q3 Loss as Spending Nears $1 Billion a Month

The company says a recent $20 billion raise will fund sub-$1 billion monthly spending for roughly a year.

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Overview

  • Internal records show xAI burned $7.8 billion in cash through the first nine months of 2025 and logged a $2.4 billion EBITDA loss through September.
  • Quarterly revenue nearly doubled to $107 million in Q3, with executives cautioning full-year sales may miss the earlier $500 million target.
  • The latest equity round valued the company at $230 billion, drawing investors such as Nvidia, Fidelity, the Qatar Investment Authority and Abu Dhabi’s MGX.
  • xAI is scaling infrastructure by adding a third building to its Colossus data center in Memphis toward roughly 2 gigawatts and setting up a vehicle with Valor and Apollo to procure Nvidia chips.
  • Leaders say the near-term push is to build AI agents for an AI-only "Macrohard" software effort that Musk has described, ultimately aimed at powering Tesla’s Optimus robots, with Grok already integrated into X and Tesla vehicles.