Email Elon Musk’s artificial intelligence startup xAI is burning through $1 billion a month, according to a Bloomberg report. The cost of building its advanced AI models has been racing ahead of its limited revenue, indicating the unprecedented financial demands of the AI industry, particularly xAI whose revenues have been slow to materialize. The company is trying to cover the gap by trying to raise $9.3 billion in debt and equity. However, the company reportedly has plans to spend more than half of it, within the next three months. xAI is expected to burn through $13 billion in 2025. Part of these losses are due to the high costs most AI companies are facing to build the server farms and buy the specialized computer chips that are needed to train advanced AI models like Grok and ChatGPT. Carlyle Group Inc. estimates that over $1.8 trillion of capital will be deployed by 2030 to meet that demand to build out AI infrastructure. recently broke off with the Department of Government Efficiency (DOGE) after voicing concerns over President Donald Trump’s “big beautiful bill.” Ever since then, he’s had his hands full dealing with his companies. Musk’s celebrity status and political power had won over investors earlier, along with the optimistic projections. Potential xAI investors were told that the company’s valuation grew to $80 billion at the end of the first quarter, up from $51 billion at the end of 2024. Investors have included Andreessen Horowitz, Sequoia Capital and VY Capital. The company is now finalizing $4.3 billion in new equity funding, and it already has plans to raise another $6.4 billion of capital next year, the company has told investors. Morgan Stanley is also helping it raise $5 billion in debt is expected to help pay for xAI’s data center development, according to what people familiar with the matter told Bloomberg. The company is also expecting to get a bit of help from a $650 million rebate from one of its manufacturers.