Elon Musk’s artificial intelligence startup xAI reported a net loss of $1.46 billion for the September quarter, widening from a $1 billion loss in the previous three months, Bloomberg News reported on Thursday, citing internal documents.
According to the report, xAI’s revenue nearly doubled sequentially to $107 million in the quarter ended September 30, 2025. The company is also said to have spent $7.8 billion in cash during the first nine months of the year, underscoring the heavy costs associated with building large-scale AI models and data center infrastructure.
Reuters said it could not immediately verify the figures. When contacted for comment, xAI responded with the message: “Legacy Media Lies.”
AI startups have been burning through significant amounts of cash as they invest billions of dollars in advanced computing hardware and compete to recruit top generative AI researchers. xAI has been ramping up spending as it seeks to position itself against established rivals in the fast-growing AI market.
Earlier this week, xAI said it raised $20 billion in an upsized Series E funding round, exceeding its original $15 billion target. The company said the fresh capital will be used to accelerate the development of new AI models and expand its computing infrastructure.
