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Elon Musk slams Bloomberg’s shocking xAI cash burn claims

Musk stated that “Bloomberg is talking nonsense.”

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Credit: xAI/X

Elon Musk has forcefully rejected Bloomberg News’ claims that his artificial intelligence startup, xAI, is hemorrhaging $1 billion monthly. 

In a post on X, Musk stated that “Bloomberg is talking nonsense.” He also acknowledged an X user’s comment that people “really have no idea what’s at stake” with AI.

Bloomberg‘s Allegations and Musk’s Rebuttal

The Bloomberg News report painted a dire picture of xAI’s finances. Citing people reportedly familiar with the matter, the news outlet claimed that xAI burns $1 billion a month as costs for building advanced AI models outpaced the company’s limited revenues. 

Bloomberg alleged that xAI is planning to spend over half of a proposed $9.3 billion fundraising haul in three months, with a projected $13 billion loss in 2025. The report also claimed that of the $14 billion that xAI has raised since 2023, only $4 billion remained by Q1 2025. Even this amount, the news outlet alleged, will be nearly depleted in Q2.

xAI did not comment on Bloomberg‘s claims, though Elon Musk shared his thoughts on the matter on social media platform X. In response to an X user who quoted the publication’s article, Musk noted that “Bloomberg is talking nonsense.” Musk, however, did not provide further details as to why the publication’s report was fallacious.

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xAI’s Bright Horizon

Despite Bloomberg‘s claims, even the publication noted that xAI’s prospects are promising. The company, now merged with X, aims to leverage the platform’s vast data archives for model training, which could reduce costs compared to rivals like OpenAI. Tapping into X also allows xAI to access real-time information from users across the globe. 

xAI’s valuation reportedly soared to $80 billion by Q1 2025, up from $51 billion in 2024. The AI startup has attracted heavyweight investors such as Andreessen Horowitz, Sequoia Capital, and VY Capital so far, and optimistic projections point to profitability possibly being attained by 2027. This would be quite a feat for xAI as OpenAI, the AI startup’s biggest rival, is still looking at 2029 as the year it could become cash flow positive.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Tesla exec gives big update on Roadster, confirming recent rumor

The Tesla Roadster might finally be on the way.

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Tesla Roadster at Tesla Battery Day 2020 Credit: @BLKMDL3 | Twitter

A Tesla executive gave a big update on the long-awaited Roadster project, confirming some recent rumors about an X post from CEO Elon Musk.

Musk said recently that he attended a meeting at Tesla’s Design Studio in Hawthorne, California, next to SpaceX headquarters. He added that there would be a “most epic demo” performed by the end of 2025, but did not give any details pertaining to what project it was related to.

Tesla Roadster to fill the void left by canceled Model S Plaid Plus: Musk

Last night, the X Takeover occurred in California, and Senior Vice President of Powertrain for Tesla, Lars Moravy, confirmed some big details about Musk’s post.

Much of the Tesla community believed it was about the Roadster, and that was the first thing Moravy confirmed. He also said that Tesla is “gearing up for a super cool demo,” and that they showed Musk some of the tech the company has been working on that will be implemented into the Roadster.

Moravy said:

“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind-blowing; We showed Elon some cool demos last week of the tech we’ve been working on, and he got a little excited.”

The Roadster has been in development for a very long time, and it has been delayed on many occasions. Tesla has stated that it will continue to add technology for a while, as COVID-19 has delayed some projects, and the company’s focus is on initiatives that will benefit humanity.

Nevertheless, many people have been waiting for the vehicle for a very long time. Some won it through the company’s referral program, while others have put down a $50,000 deposit. Tesla has been hinting that it is adding some interesting tech to the Roadster, including the SpaceX package that will help it hover and reach 0-60 MPH in just 1.1 seconds.

Tesla Roadster SpaceX Package’s 1.1-second 0-60 mph launch visualized in concept video

It sounds as if this could be one of the few things that Tesla could show off at the demo Musk hyped up last week.

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Elon Musk

xAI, Musk Foundation helps schools near Memphis supercomputer site

Reports of xAI and the Musk Foundation’s work were recently posted by local news media.

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(Credit: xAI)

Elon Musk’s artificial intelligence startup xAI and the Musk Foundation have been supporting Memphis-Shelby County Schools with HVAC repairs and facility upgrades, while also funding youth programs for students in the area. 

Reports of xAI and the Musk Foundation’s work were recently posted by local news media.

xAI’s school visits lead to facility repairs

Representatives from xAI visited John P. Freeman Optional School, Fairley High School, and Westwood High School, all of which are located near its Colossus supercomputer site, to assess HVAC systems, plumbing, gym facilities, and athletic fields. The visits resulted in a list of priority repairs, some of which were completed in April and May.

In addition to the repairs, xAI also shared a number of initiatives that are planned for students in the area, as stated in a Commercial Appeal report.

“xAI is working on providing STEM workshops for local students, donating equipment to technical training programs, and supporting job fairs to boost employment opportunities. These initiatives reflect xAl’s commitment to fostering education and economic growth in Memphis,” xAI noted in a statement.

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Musk Foundation donation

Apart from xAI, the Musk Foundation also donated $350,000 to the Boys & Girls Clubs of Greater Memphis, enabling the reopening of two club sites located at Booker T. Washington High School and Westwood High School. Both locations had closed earlier this year due to lapses in funding. As per xAI, the Musk Foundation’s donation allows clubs to reopen for almost 1,000 students. 

The donation will fund staffing, supplies, and transportation, among others. “Kids are the future of humanity,” Elon Musk said in a statement, adding that students need “every chance to shoot for the stars.”

“We’re honored to support the Boys & Girls Clubs of Greater Memphis in reopening these sites, giving kids in underserved communities the tools to build brighter futures,” Musk said.

The gift was praised by local officials, including Boys & Girls Clubs board chair Michael Garriga, who stated that the “commitment will ensure the youth of our community have the opportunities they need to develop their skills and talents to become successful students and future citizens.”

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What to expect from Tesla CEO Elon Musk’s new Master Plan

While Musk only shared a few tidbits about his next plan, he did hint at its theme.

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Credit: Tesla Asia/X

Tesla CEO Elon Musk is working on another Master Plan. The executive mentioned this during the company’s second quarter earnings call earlier this week. While Musk only shared a few tidbits about his next plan, he did hint at its theme.

Master Plan Part Four

Elon Musk’s Master Plans have been a huge guiding hand for Tesla over the past couple of decades. His first Master Plan, which was published in 2006, featured a pathway towards the production of the Model 3 and energy storage systems. Master Plan, Part Deux, which was published ten years later in 2016, featured a pathway towards a Robotaxi network. 

Master Plan Part 3 was more ambitious, as it presented a case towards a world where there is sustainable energy for the entire planet. Considering the scale and ambitious nature of Master Plan Part 3, it was widely speculated that Elon Musk’s next Master Plan would not be around for some time. During the second quarter earnings call, however, Musk confirmed that he is indeed creating his next big plan.

Master Plan Part 4

Elon Musk mentioned his next Master Plan when a question was asked about the work that goes on inside the Tesla Design Studio during the Q2 2025 earnings call. In response to the inquiry, Tesla Chief Designer Franz von Holzhausen emphasized that while earnings calls are not the venue for disclosing new product-related information, Tesla is working to ensure that the future remains exciting. Musk agreed, stating that there are lots of exciting things happening in the Tesla Design Studio.

“What’s going to happen over the next several years is a fundamental transformation of the company from a pre-autonomy world to a post-autonomy. And I’m working on a new Master Plan to articulate that to the Tesla team. And there will be some teething pains as you transition from a pre- autonomy to post-autonomy world, but I think the future vision for Tesla is incredibly exciting and will profoundly change the world in a good way,” Musk said.

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A Post-Autonomy World

Considering Musk’s comments, it would appear that Master Plan Part 4 will be focused on a path towards what the CEO has been describing as “sustainable abundance.” If Master Plan Part 3 was focused on fostering sustainable energy for the entire planet, Master Plan Part 4 will likely present a path towards abundance in a world populated by self-driving vehicles like the Cybercab and humanoid robots like Optimus.

Master Plan Part 4 will likely have been farfetched just a couple years ago. Yet with Tesla now operating its Robotaxi service in Austin and Optimus V3 expected to enter production next year, the idea of a world filled with “sustainable abundance” does seem quite feasible. It will be ambitious like Elon Musk’s other Master Plans, of course, but it will be attainable. 

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