Elon Musk’s AI startup xAI reported a net loss of $1.46 billion for the quarter ended September 30, 2025, up from $1 billion in the prior three months, according to Bloomberg News citing internal documents. Revenue nearly doubled sequentially to $107 million.
The company spent $7.8 billion in cash in the first nine months of 2025, reflecting high costs associated with advanced AI infrastructure, including data center hardware and top-tier generative AI talent. AI startups often operate at large losses in early stages as they invest heavily in computing and research capabilities.
xAI also recently raised $20 billion in an upsized Series E funding round, surpassing its original $15 billion target. The financing is intended to support the development of new AI models and the expansion of computing infrastructure, underscoring the company’s aggressive growth strategy despite persistent quarterly losses.
The startup declined to comment to Reuters, responding with “Legacy Media Lies.” The report could not be independently verified. The figures highlight both the high capital intensity and rapid revenue growth characteristic of leading generative AI firms in 2025.
