Musk's artificial intelligence startup xAI is trying to raise $9.3 billion through debt and equity, but according to deal terms shared with investors, the company plans to spend more than half of it within the next three months, even before funding is in place. The speed of the company's financing and cash consumption clearly reflects the AI industry's unprecedented capital requirements, as well as the relatively meager revenue that xAI has brought so far. According to people familiar with the matter, Musk's startup is responsible for developing the artificial intelligence chatbot Grok, and the company's leveraged cash flow is expected to reach about $13 billion by 2025, which is equivalent to more than $1 billion a month. As a result, its high-profile financing efforts barely kept pace with spending.

Musk's artificial intelligence startup xAI is trying to raise $9.3 billion through debt and equity, but according to deal terms shared with investors, the company plans to spend more than half of it within the next three months, even before funding is in place. The speed of the company's financing and cash consumption clearly reflects the AI industry's unprecedented capital requirements, as well as the relatively meager revenue that xAI has brought so far. According to people familiar with the matter, Musk's startup is responsible for developing the artificial intelligence chatbot Grok, and the company's leveraged cash flow is expected to reach about $13 billion by 2025, which is equivalent to more than $1 billion a month. As a result, its high-profile financing efforts barely kept pace with spending.