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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 says texting and driving capability is coming ‘in a month or two’

“In the next month or two, we’re going to look at the safety statistics, but we’re going to allow you to text and drive, essentially.”

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Credit: Tesla

Tesla CEO Elon Musk said that within the next month or two, the company will be able to open the ability for people to text and drive because its Full Self-Driving suite will be robust enough to allow drivers to take their attention away from the road.

In its current state, Tesla Full Self-Driving is a supervised driver assistance suite that requires the vehicle operator to maintain control of the vehicle and pay attention to the road surroundings.

However, the company has been aiming to release a fully autonomous version of the Full Self-Driving suite for years, teasing its future potential and aiming to release a Level 5 suite as soon as possible.

CEO Elon Musk believes the company is on the cusp of something drastic, according to what he said at yesterday’s Annual Shareholder Meeting.

One thing Musk hinted at was that the company should be able to allow those sitting in the driver’s seat of their cars to text and drive “in the next month or two,” as long as the statistics look good.

He said:

“In the next month or two, we’re going to look at the safety statistics, but we’re going to allow you to text and drive, essentially.”

The company recently transitioned to its v14 Full Self-Driving suite, which is its most robust to date, and recently expanded to Cybertruck, completing its rollout across the vehicle lineup.

Currently, Tesla is running v14.1.5, and when major improvements are made, that second number will increase, meaning v14.2 will be the next substantial improvement.

Musk said that v14.3 will be when you can “pretty much fall asleep and wake up at your destination.”

We’ve heard a considerable amount of similar statements in the past, and Tesla owners have been conditioned to take some of these timeframes with autonomous driving with a grain of salt.

However, with the upgrades in FSD over the past few months, especially with the rollout of Robotaxi in Austin, which does not utilize anyone in the driver’s seat for local roads, it does not seem as if autonomy is that far off for Tesla.

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Elon Musk

Tesla Optimus’ pilot line will already have an incredible annual output

And this would just be the beginning. In the future, Musk mused that Optimus’ production could literally be out of this world.

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(Credit: Tesla)

During the 2025 Tesla Annual Shareholder Meeting, Elon Musk provided a teaser of the company’s targets for Optimus’s annual production. As per the CEO, Optimus’ pilot line will be capable of producing up to one million units annually. 

And this would just be the beginning. In the future, Musk mused that Optimus’ production could literally be out of this world.

Musk targets world’s fastest production ramp for Optimus robots

Tesla’s first Optimus line will be built in Fremont, California, and is projected to produce around one million robots per year. Other facilities like Gigafactory Texas could scale Optimus production to 10 million units annually. Musk even joked that a 100-million-unit line might one day be built “on Mars.” With Optimus, Musk stated that Tesla is looking to achieve a historic production ramp. 

“So we’re going to launch on the fastest production ramp of any product of any large complex manufactured product ever, starting with building a one million unit production line in Fremont. And that’s Line One. And then a 10-million-unit-per-year production line here (at Giga Texas). I don’t know where we’re going to put the one hundred million unit production line, maybe on Mars. But I think it’s going to literally get to one hundred million a year, maybe even a billion a year,” Musk said.

Optimus and sustainable abundance

Tesla’s Master Plan Part IV is all about sustainable abundance, and Musk highlighted that the humanoid robot will play a huge role in his vision for the future. He noted that Optimus’ mass production could redefine economic and social systems worldwide and open up premium services for everyone across the globe. 

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“People often talk about eliminating poverty or giving everyone amazing medical care. There’s only one way to do that, and that’s with the Optimus robot,” Musk said. “With humanoid robots, you can actually give everyone amazing medical care. In terms of Optimus will be more precise. Optimus will ultimately be better than the best human surgeon with a level of precision that is beyond human… People always talked about eliminating poverty, but actually, Optimus will actually eliminate poverty,” Musk said.

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Tesla schedules Roadster unveiling event, and you won’t believe when it is

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Tesla has tentatively scheduled its unveiling event for the Roadster’s next-generation iteration, and you will not believe the date the company picked for it.

Tesla CEO Elon Musk said during the 2025 Annual Shareholders Meeting that the company is aiming for an April 1 demo event.

Yes, April Fools’ Day.

Tesla originally aimed for its “most epic demo” to take place at the end of this year. However, the writing on the wall as 2025 winds down seemed to indicate the company was not quite ready to show off everything it plans to implement into the Roadster.

Its capabilities have been teased quite heavily throughout most of the year, but the biggest hints came last week when Musk appeared on the Joe Rogan Experience Podcast.

He said:

“Whether it’s good or bad, it will be unforgettable. My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars. I think if Peter wants a flying car, he should be able to buy one…I think it has a shot at being the most memorable product unveil ever. [It will be unveiled] hopefully before the end of the year. You know, we need to make sure that it works. This is some crazy technology in this car. Let’s just put it this way: if you took all the James Bond cars and combined them, it’s crazier than that.”

The Roadster has been somewhat of a letdown, at least in its newest version, thus far. Tesla has routinely delayed the project, putting those who put lofty down payments on the car in a weird limbo, lost at what to do.

One notable pre-orderer cancelled his reservation last week and got in a spat with Musk about it.

Now that there is a definitive date for the Roadster unveiling, Musk and Co. should have a more definitive cutoff date for features and capabilities. Chief Designer Franz von Holzhausen said earlier this year that when they showed Musk what they had done with the Roadster, the CEO encouraged them to do even more with it.

This delayed things further.

Musk also said he believes production would begin between 12 and 18 months after the unveiling, putting it out sometime in 2027.

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