January 9, 2026 – According to internal documents obtained by Bloomberg, Elon Musk’s artificial intelligence (AI) firm xAI is burning through cash at an alarming rate. The company’s heavy investments in data center infrastructure, talent acquisition, and software development have led to soaring losses, all in pursuit of supporting its ambitious humanoid robot project.
Data reviewed by Bloomberg reveals that xAI reported a net loss of 1.46billioninthequarterendingSeptember2025,upfrom1 billion in the first quarter of the same year. Over the first nine months of 2025, the company had already burned through $7.8 billion in cash.
Sources familiar with the matter said that, like other fast-growing AI startups, xAI is rapidly depleting the funds raised in its recent financing rounds. During its latest earnings report and investor calls, xAI emphasized its goal of creating self-sustaining AI systems that would ultimately power humanoid robots, including Tesla’s Optimus, designed to replace human labor.
During investor calls, xAI management stated that the company’s current priority is to accelerate the development of AI agents and related software. Sources added that these products would gradually be integrated into Macrohard, a pure AI software company, with the ultimate aim of providing the technological foundation for Optimus.
xAI executives assured investors that the company had the resources to continue its large-scale investments. Financial documents described the rapid growth of the AI industry as achieving “escape velocity,” a term borrowed from celestial mechanics and frequently used by Musk to describe the high-speed expansion of his ventures.
Despite the losses, financial records showed that xAI’s revenue nearly doubled in the three months ending September 30, 2025, reaching $107 million.
