Elon Musk’s xAI Forecasts $13 bn Earnings by 2029
xAI anticipates reaching $1 billion in gross revenue by year-end.
Elon Musk’s AI startup xAI is projecting more than $13 billion in annual earnings by 2029, according to figures shared by Morgan Stanley, which is arranging a $5 billion debt sale.
The bank provided select investors—those committing at least $50 million—access to xAI’s financials.
xAI anticipates reaching $1 billion in gross revenue by year-end, with a dramatic surge to $13 billion by 2029.
Despite suffering a $341 million first-quarter loss before interest, taxes, depreciation, and amortization (EBITDA), the startup projects positive EBITDA of $2.7 billion in 2027.
The company plans to invest $18 billion in data-centre infrastructure after already spending $2.6 billion, reflecting the high demands of AI development.
xAI is reportedly in early discussions to raise $20 billion in fresh funding, which could value the company at over $120 billion.
If finalised, this would be the second-largest startup funding round in history, trailing only OpenAI’s $40 billion raise last month.
Comments ()