Elon Musk’s xAI posts $1.46 Bn quarterly loss as spending on AI infrastructure surges

Elon Musk’s artificial intelligence startup xAI reported a wider net loss in the September quarter as spending on AI development and infrastructure accelerated, according to a report by Bloomberg News citing internal documents.

The company recorded a net loss of $1.46 billion for the three months ended September 30, compared with a loss of $1 billion in the previous quarter, the report said. Revenue during the period nearly doubled sequentially to $107 million, reflecting growing commercial activity even as costs mounted.

The report also said xAI spent approximately $7.8 billion in cash during the first nine months of the year, underscoring the scale of investment required to compete in the rapidly evolving generative AI market.

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AI startups are known for significant cash burn as they race to build advanced models, secure specialised data-centre hardware and attract top-tier researchers. Industry leaders have poured billions of dollars into computing infrastructure in an effort to close performance gaps with established rivals.

Earlier this week, xAI announced that it had raised $20 billion in an expanded Series E funding round, surpassing its initial $15 billion target. The capital raise is expected to support the development of new AI models and the expansion of the company’s computing capabilities.

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