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Elon Musk constructed his personal mythology around a pair of weighty accomplishments: building actual, stable businesses around both rockets and electric cars. <\/p>\n
So far, he has yet to accomplish the same thing around his AI business. According to documents obtained by Bloomberg<\/a>, xAI recorded a net loss of $1.46 billion over the third quarter of 2025. That\u2019s an even worse loss than previous months \u2014 in the first quarter of 2025, for example, the company\u2019s net loss was roughly $1 billion, and it\u2019s shredded $7.8 billion in cash over the last year, according to documents obtained by the publication.<\/p>\n It\u2019s in good company. Every major AI company is currently losing money hand over fist on the tech. Like its peers, xAI insists that pattern is temporary; per Bloomberg, its executives told investors in a recent earnings call that the company has the resources to \u201ccontinue spending aggressively.\u201d<\/p>\n Eventually, they promised, the company will build \u201cself-sufficient AI\u201d that can power Tesla\u2019s Optimus robots. Like xAI, Tesla\u2019s stuttering Optimus program<\/a> is eons away from ever turning a profit \u2014 or even from hitting the market<\/a>, for that matter.<\/p>\n The financial news comes as xAI announces plans to build yet another massive data center<\/a>, this time in Southaven, Mississippi. With a price tag of $20 billion, it would be the largest private investment in the state\u2019s history \u2014 and like previous xAI data centers in Memphis, Tennessee, it will no doubt be a massive headache<\/a> for its unfortunate neighbors.<\/p>\n