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# Elon Musk’s xAI Forecasts $13 bn Earnings by 2029
- URL: https://www.theleftshift.com/elon-musks-xai-forecasts-13-bn-earnings-by-2029/
- Published: 2025-06-09T08:16:26.000Z
- Updated: 2025-06-09T08:16:26.000Z
- Description: xAI anticipates reaching $1 billion in gross revenue by year-end.
- Author: Pritam Bordoloi 
- Tags: AI Startups, #a42

Elon Musk’s AI startup xAI is [projecting](https://www.reuters.com/business/musks-xai-expects-annual-earnings-over-13-billion-by-2029-bloomberg-reports-2025-06-06/?ref=theleftshift.com) 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](https://www.theleftshift.com/musks-xai-in-early-talks-to-raise-billions-of-dollars/) 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.