xAI under Musk sees quarterly losses widen further

According to foreign media citing internal documents, Elon Musk's xAI is rapidly consuming funds, with losses continuing to escalate due to the company's significant investments in building data centers, hiring talent, and developing software that will ultimately be used to drive humanoid robots.

The documents show that xAI reported a net loss of $1.46 billion in the third quarter, up from $1 billion in the first quarter. In the first nine months of 2025, the company spent a total of $7.8 billion in cash. According to informed sources, like other rapidly growing AI startups, the funds raised in xAI's recent financing round are being quickly put to use.

During an investor conference call, xAI's senior management informed investors that the current core focus of xAI is to accelerate the development of AI agents and other software products. These products will feed into the so-called "Macrohard"—a term Musk has explained refers to a pure AI software company, with a name that is a play on "Microsoft"—until they ultimately provide technical support for Optimus.