Musk's XAI Burns Almost $8B, Reveals Optimus Plan (finance.yahoo.com)

Elon Musk’s AI startup, xAI, has reported substantial financial losses totaling $1.46 billion for the September quarter, raising its total cash burn to $7.8 billion for the year as it aggressively builds data centers and recruits talent. The company aims to develop AI capable of powering humanoid robots like Optimus, which aligns with Musk’s vision of replacing human labor with advanced robotics. Despite the losses, xAI’s revenue nearly doubled to $107 million in the same quarter, reflecting a concerted effort to scale operations rapidly, though concerns about profitability persist, with an EBITDA loss of $2.4 billion reported for the year. xAI's ambitious plans include creating "Macrohard," an AI-driven software company, indicating a significant shift toward integrating AI across various Musk ventures. The startup has raised a total of $40 billion in equity, including a recent $20 billion round led by notable investors like Nvidia and Qatar’s investment authority. The rapid expansion of its facilities, particularly in Mississippi, is set to bolster its computing capabilities to nearly 2 gigawatts. While xAI's strategy exemplifies the high-stakes and resource-intensive nature of the AI landscape, it also underscores the ongoing challenges of achieving sustainable profitability in the startup environment.