Brandon Smialowski/AFP via Getty Images
Elon Musk built his personal mythology around a few key accomplishments: building real, stable businesses around both rockets and electric cars.
As of now, he is yet to complete the same work around his AI business. according to documents received by bloombergXAI reported a net loss of $1.46 billion in the third quarter of 2025. This is an even worse loss than in previous months – for example, in the first quarter of 2025, the company’s net loss was almost $1 billion, and it has $7.8 billion less in cash than last year, according to documents obtained by the publication.
It is in good company. Every major AI company is currently losing money on the technology. Like its peers, xAI emphasizes that the pattern is temporary; Per bloombergIts executives told investors in a recent earnings call that the company has the resources to “continue spending aggressively.”
Eventually, he promised, the company will build “self-reliant AI” that could power Tesla’s Optimus robot. Like XAI, Tesla’s stuttering Optimus program is a long way from ever turning a profit – or even farther away make waves in the marketfor that matter.
The financial news comes as xAI announces another construction plan massive data centerThis time in Southaven, Mississippi. With a price tag of $20 billion, it will be the largest private investment in the state’s history – and like previous XAI data centers in Memphis, Tennessee, it will no doubt be a major headache for its unlucky neighbors.
More on XAI: Elon Musk After His Grok AI Did Disgusting Things With Real Kids: “So Much Fun”
