Musk's xAI, a company focused on artificial intelligence development, is reporting truly massive financial losses. According to internal documents reviewed by Bloomberg, the company posted a net loss of $1.46 billion (approximately CZK 33.58 billion) for the quarter ending in September 2025. That is more than in the previous period—in the first quarter, it was "only" $1 billion (CZK 23 billion). Overall, during the first nine months of 2025, xAI spent $7.8 billion (CZK 179.4 billion) in cash, meaning the company burned through nearly $1 billion (CZK 23 billion) every month.
This money is going primarily toward building data centers, recruiting top talent, and developing software. The company explains this by saying it wants to grow rapidly, like other artificial intelligence startups. During a recent call with investors, xAI's management said it had enough resources to continue this high level of spending. The goal is to create standalone artificial intelligence that would eventually power humanoid robots such as Tesla's Optimus.
Plans for robots and software
xAI's management, including Chief Business Officer Jon Shulkin, told investors that it is now focusing on building autonomous artificial intelligence agents and other software. All of this is intended to form the basis of a project called "Macrohard"—a play on the name Microsoft that Elon Musk uses for a purely software-based artificial intelligence company. Once the technology is ready, it is intended to power robots like Optimus, which could replace human labor.
The company compares its growth to "escape velocity"—a term from spaceflight that Musk also frequently uses for his company SpaceX. For now, however, Tesla's Optimus program is not yet on the market and is far from profitable. xAI plans to build another enormous data center in Southaven, Mississippi, for $20 billion (CZK 460 billion), which would be the largest private investment in the state's history. A similar facility in Memphis, Tennessee, is already causing problems for nearby residents because of its size.
Financial results and investments
Although losses are growing, xAI's revenue is improving. For the quarter ending September 30, 2025, revenue nearly doubled from the previous period to $107 million (CZK 2.46 billion). The company's gross profit rose to $63 million (CZK 1.45 billion) from just $14 million (CZK 322 million) previously. By September, xAI had generated more than $200 million (CZK 4.6 billion) in revenue, but that was less than originally planned—it had aimed to reach $500 million (CZK 11.5 billion) for the full year.
The EBITDA loss (earnings before interest, taxes, depreciation, and amortization) totaled $2.4 billion (CZK 55.2 billion) through September, worse than the original estimate of $2.2 billion (CZK 50.6 billion). The company raises money from investors such as Nvidia, Valor Equity Partners, and the Qatar Investment Authority. It recently closed a $20 billion (CZK 460 billion) funding round that valued it at $230 billion (CZK 5.29 trillion). This money should last for a year or longer, as monthly capital expenditures currently remain below $1 billion.
Links to Musk's other companies
Elon Musk is interconnecting his companies. xAI's Grok chatbot is integrated into the X social network (formerly Twitter) and is also available in Tesla vehicles. SpaceX invested in xAI, while xAI, in turn, purchased hundreds of millions of dollars' worth of Tesla Megapack batteries. Tesla is not currently an investor in xAI, although Tesla shareholders voted in November on a possible partnership, but the proposal ultimately failed to pass. Tesla's board, including General Counsel Brandon Ehrhart, is now considering other options.
