IT Home News, June 19th - Bloomberg News published a report today about Elon Musk's artificial intelligence startup xAI, claiming that the company is losing up to $1 billion per month (IT Home Note: approximately 7.19 billion RMB at current exchange rates). However, Musk strongly denied this claim on social platform X, calling the Bloomberg report "nonsense".

The Bloomberg report painted a grim picture of xAI's financial situation, citing information from "people familiar with the matter", stating that the costs of building advanced AI models far exceeded the company's limited revenue, resulting in a monthly loss of $1 billion. The report also claimed that xAI plans to spend more than half of its proposed $9.3 billion financing within three months and expects a loss of $13 billion by 2025. Additionally, the report pointed out that the $14 billion raised by xAI since 2023 will be reduced to $4 billion by the first quarter of 2025, with these funds almost depleted by the second quarter.

xAI did not comment on the Bloomberg report, but Musk responded on social platform X to a user who quoted the report, saying: "Bloomberg is talking nonsense." However, he did not elaborate further on why the report was incorrect.

Despite the negative claims made by Bloomberg, even the media admitted that xAI's prospects are bright. Now that xAI has merged with the X platform, it plans to use the platform's vast data archives for model training, which may give it an advantage over competitors like OpenAI. Additionally, through access to the X platform, xAI can obtain real-time information from users worldwide.

It was reported that xAI's valuation surged to $80 billion in the first quarter of 2025, up from $51 billion in 2024. The company has already attracted heavyweight investors such as Andreessen Horowitz, Sequoia Capital, and VY Capital. Optimistic forecasts show that xAI could achieve profitability by 2027. This would be an extraordinary achievement, as OpenAI, one of xAI's competitors, still expects to turn cash flow positive by 2029.

Original Source: https://www.toutiao.com/article/7517463544321917449/

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