Elon Musk has promised that his artificial intelligence activity, Xai, will help revolutionize society. Before it can do it, however, the company will have to become taxable, a goal that has not yet ended. In fact, at the present time, the company seems to burn in cash at a rhythm that, in any other sector, would be completely unsustainable.
A New relationship From the statements of Bloomberg that the artificial intelligence company plans to spend at least $ 13 billion this year, which is equivalent to just over a billion dollars per month. The outlet cites “people who are familiar with the terms of the agreement who asked not to be identified because the information is private”. At the same time, the company continues to collect enormous quantities of money from investors to keep up with its amazing cash flows. I report the outlets:
The company is now finalizing $ 4.3 billion in new shareholders and already planned to collect other $ 6.4 billion in capital next year, he told the company in investors. And this is at the top of the 5 billion dollars of debt that Bloomberg has previously reported by Morgan Stanley is helping him to collect. The company debt should help pay for the development of the XAI data center, people said. Other companies instead decided to carry out projects for projects.
Era Recently reported The fact that XAI had obtained a generous infusion of investments from some of the best risk capital companies of Silicon Valley (including Google-Backer’s Sequoia). Bloomberg observes, however, that, despite the “prolific fundraising efforts” of the company “, he is only” barely keeping step with the expenses “because of his immense cash burning. Gizmodo contacted XAI for more information.
What is the company doing with all that money? Xai’s main contribution to the company so far is Grok, Musk’s “anti-woke” chatbot which is sometimes Surprisingly awakened. Grok raised his eyebrows in the past, with his not touching “White genocide.” THE The company merged with X (The company previously known as Twitter, which Musk purchased in 2022) at the beginning of this year. Bloomberg’s new report notes that Xai hopes to use data flows in the course of X (from its billion posts generated by users and bots) to help to constantly form Grok’s algorithm.
Xai can be owned by the richest man in the world, but the company is really seen as a loser when it comes to the current race for the Supremacy of the AI. Musk’s company is in battle launched against a certain number of other companies better positioned and better resources (such as Openii, Meta and Anthropic), which all try to crown the definitive king of the AI boom.
As usual, Musk has made great promises on what he believes that his companies can deliver in the kingdom of automation, robotics and generative res. He said that his company will eventually create a line of domestic robots products that will deal with the domestic tasks of the Americans and, more recently, has promised to launch a robotaxi activity. Apart from hyperbole, it remains to be seen if Musk’s company will even be able to survive these early phases hungry for money from its business cycle.
