Elon Musk’s AI startup xAI is facing significant financial struggles, losing $1 billion a month due to rapid model development costs exceeding revenue. This reflects the high costs of building advanced AI models in an industry where revenues are slow to materialize.
Source: https://www.bloomberg.com/news/articles/2025-06-17/musk-s-xai-burning-through-1-billion-a-month-as-costs-pile-up