Elon Musk’s artificial intelligence company xAI, which entered the sector with big goals, draws attention with its high spending pace. According to sources close to the company, xAI will spend approximately $13 billion in 2025.

xAI plans to spend a lot of money

This table indicates a monthly cash outflow approaching $1 billion. While the company is expected to earn around $500 million in revenue throughout the year, the fact that this figure is quite limited compared to the expenses reveals serious financial pressure.

xAI has raised a total of $14 billion in capital since 2023. However, the amount remaining in its coffers has fallen to only $4 billion by the end of March 2025. If the current spending rate continues, this money is expected to be largely depleted by the end of the second quarter.

Another development that could partially ease the short-term cash balance is the $650 million refund payment xAI expects to receive from a hardware manufacturer. This refund may provide a temporary contribution to the company’s cash flow.

It is stated that the company needs approximately $9.3 billion in additional resources to finance its total expenses in 2025. $4.3 billion of this amount will be provided from a new investment round that is about to be completed, and $5 billion will be provided through debt.

In addition, since xAI’s revenue expectation in 2026 will remain at only $2 billion, the company will need to continue its search for financing at this date. According to estimates, a new funding need of approximately $6.4 billion will arise for 2026.

Despite all these financial difficulties, xAI’s market value continues to rise. The company’s valuation reached $80 billion in the first quarter of 2025. This shows that investors believe in xAI’s long-term potential.