--- title: "Elon’s xAI Is Losing Staggering Amounts of Money" description: "Elon Musk's xAI has reported a staggering net loss over the last three months, bringing the year's total losses to $7.8 billion." date: "2026-01-11" modified: "2026-01-11" authors: - name: "Joe Wilkins" job_title: "Correspondent" link: "https://futurism.com/authors/jwilkins" url: "https://futurism.com/artificial-intelligence/elon-musk-xai-money" categories: - "Artificial Intelligence" - "Finance" - "Future Society" - "xAI" --- # Elon’s xAI Is Losing Staggering Amounts of Money ![Elon Musk's xAI has reported a staggering net loss over the last three months, bringing the year's total losses to $7.8 billion.]() *BRENDAN SMIALOWSKI/AFP via Getty Images* Elon Musk constructed his personal mythology around a pair of weighty accomplishments: building actual, stable businesses around both rockets and electric cars. So far, he has yet to accomplish the same thing around his AI business. According to [documents obtained by *Bloomberg*](), xAI recorded a net loss of $1.46 billion over the third quarter of 2025. That's an even worse loss than previous months — in the first quarter of 2025, for example, the company's net loss was roughly $1 billion, and it's shredded $7.8 billion in cash over the last year, according to documents obtained by the publication. It's in good company. Every major AI company is currently losing money hand over fist on the tech. Like its peers, xAI insists that pattern is temporary; per *Bloomberg*, its executives told investors in a recent earnings call that the company has the resources to "continue spending aggressively." Eventually, they promised, the company will build "self-sufficient AI" that can power Tesla's Optimus robots. Like xAI, Tesla's [stuttering Optimus program]() is eons away from ever turning a profit — or even from [hitting the market](), for that matter. The financial news comes as xAI announces plans to build yet another [massive data center](), this time in Southaven, Mississippi. With a price tag of $20 billion, it would 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 [massive headache]() for its unfortunate neighbors. **More on xAI:** *[Elon Musk After His Grok AI Did Disgusting Things to Literal Children: “Way Funnier”]()* ## Author At Futurism, I focus on the intersection of technology and power — examining the economics, history, and politics behind today’s dystopian headlines. As a writer, I’m interested in topics ranging from AI’s impact on labor to startups nobody asked for. My prior work includes bylines in Jacobin, Verso, and Blue Labyrinths. My work for Futurism has been cited by publications including Forbes, The Guardian, MIT Technology Review, Time, The Nation, Mother Jones, The Verge, and Wired. I grew up in Michigan, attending Central Michigan University as well as Ball State University, where I earned a master of music. I now live in Brooklyn with my girlfriend and our cat Ziti. On weekends, you can find me hunched over a cold pint arguing geopolitics with the other transplants. ### Author social links [Bluesky]()