, Columnist
Musk’s xAI Will Be Hard-Pressed to Extinguish Its Cash Fire
The Grok parent is spending $1 billion a month. Prospective investors should be asking tough questions about how it could meaningfully increase revenue.
How you’re going to make money, for starters.
Photographer: Andrey Rudakov/Bloomberg
The amount of money either being frittered away or shrewdly invested on AI development (pick your own adventure) continues to be astonishing. The latest figures, reported by Bloomberg News on Tuesday, deal with Elon Musk’s xAI:
That’s more than $1 billion burned every month, in other words, making it necessary for that prolific fundraising to hit new heights: The company is looking to raise $9.3 billion in debt and equity. It expects to spend more than half of it within the next three months.