Elon Musk's xAI spends $1 billion monthly, heavily investing in AI model development.

BlockBeats news, on June 18, according to a report by The Information, Elon Musk's artificial intelligence company xAI is burning through $1 billion per month, heavily investing in the development of its AI models.

The company is aiming to raise $9.3 billion through debt and equity financing, and plans to spend more than half of that amount in the next three months. Meanwhile, xAI has informed investors that it expects a revenue of only $500 million this year.

To catch up with competitors like OpenAI, xAI is accelerating the construction of a high-cost supercomputing center in Tennessee. However, some investors believe xAI has a potential edge in the competition, as it has been integrated with Musk's social media platform X, enabling it to leverage user-generated news, posts, and other data for training its AI models.