Elon Musk constructed his personal mythology around a pair of weighty accomplishments: building actual, stable businesses around both rockets and electric cars.
So far, he has yet to accomplish the same thing around his AI business. According to documents obtained by Bloomberg, xAI recorded a net loss of $1.46 billion over the third quarter of 2025. That’s an even worse loss than previous months — in the first quarter of 2025, for example, the company’s net loss was roughly $1 billion, and it’s shredded $7.8 billion in cash over the last year, according to documents obtained by the publication.
It’s in good company. Every major AI company is currently losing money hand over fist on the tech. Like its peers, xAI insists that pattern is temporary; per Bloomberg, its executives told investors in a recent earnings call that the company has the resources to “continue spending aggressively.”
Eventually, they promised, the company will build “self-sufficient AI” that can power Tesla’s Optimus robots. Like xAI, Tesla’s stuttering Optimus program is eons away from ever turning a profit — or even from hitting the market, for that matter.
The financial news comes as xAI announces plans to build yet another massive data center, this time in Southaven, Mississippi. With a price tag of $20 billion, it would be the largest private investment in the state’s history — and like previous xAI data centers in Memphis, Tennessee, it will no doubt be a massive headache for its unfortunate neighbors.
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