Elon Musk's artificial intelligence startup xAI is attempting to raise $9.3 billion through debt and equity financing, but according to a deal sheet shared with investors, the company plans to spend more than half of that amount in the next three months, even before the funds are received. This starkly illustrates the unprecedented funding demands of the AI industry and the relatively meager income, at least for xAI.
The company's cash flow, as seen from its leverage, suggests that xAI, which is developing AI chatbot Grok, expects to spend around $13 billion in 2025, exceeding $10 billion per month. This means that the company's frequent fundraising activities can barely keep up with its expenditure pace.
The company's spokesperson declined to comment.