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.

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.

The xAI supercomputer, Colossus, faces a potential lawsuit from the NAACP and the Southern Environmental Law Center over pollution concerns tied to its gas-powered turbines. The facility has sparked debate over its environmental impact versus economic benefits.

The xAI data center has been operational since last year. The company used pollution-emitting turbines without an air permit, citing a 364-day exemption. Southern Environmental Law Center attorney Patrick Anderson disputed xAI’s exemption, stating: “there is no such exemption for turbines — and that regardless, it has now been more than 364 days.”

The groups issued a 60-day notice of intent to sue under the Clean Air Act, challenging xAI’s permit application under review by the Shelby County Health Department.

According to AP, critics argue the turbines emit smog, carbon dioxide, nitrogen oxides, and formaldehyde, worsening health risks in an area with cancer rates four times the national average.

“The permit itself says emissions from the site ‘will be an area source for hazardous air pollutants,’” the Southern Environmental Law Center noted, alleging Clean Air Act violations.

Opponents claim xAI installed up to 35 turbines—exceeding the 15 requested—without community oversight, straining Memphis’s power grid.

xAI responded: “The temporary power generation units are operating in compliance with all applicable laws.”

The company highlighted its economic contributions, including billions in investments, millions in taxes, and hundreds of jobs. At an April community meeting, xAI’s Brent Mayo underscored that the “tax revenue will support vital programs like public safety, health, human services, education, firefighters, police, parks, and so much more.” He projected that xAI would generate over $100 million in tax revenue by next year. The company is also investing $35 million in a power substation and $80 million in a water recycling plant.

Additionally, xAI is transitioning to sustainable power, particularly Tesla Megapacks. It is actively working on demobilizing the gas turbines.

“The temporary natural gas turbines that were being used to power the [xAI’s] Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months,” shared the Greater Memphis Chamber. xAI brought Tesla Megapack batteries and a 150-megawatt substation online earlier this year.

Despite xAI’s expansion to a second 1-million-square-foot site, the lawsuit threat underscores tensions between innovation and environmental justice.

SpaceX’s Starlink India expansion gained momentum as SpaceX President and COO Gwynne Shotwell met with Communications Minister Jyotiraditya Scindia on Tuesday, following the company’s recent telecom license approval. The discussions focused on satellite communications to advance Digital India’s connectivity goals.

“Had a productive meeting with Ms. Gwynne Shotwell, President & COO of SpaceX, on India’s next frontier in connectivity. We delved into opportunities for collaboration in satellite communications to power Digital India’s soaring ambitions and empower every citizen across the country,” Scindia said.

India’s Communications Minister emphasized the transformative potential of satellite technologies, while Shotwell expressed gratitude for the license. Scindia noted: “Ms. Shotwell appreciated the license granted to Starlink, calling it a great start to the journey.”

Starlink India cleared a major regulatory hurdle after the Department of Telecommunications granted it a Global Mobile Personal Communication by Satellite (GMPCS) license. SpaceX secured the approval after a three-year wait.

In April, Starlink executives, including Vice President Chad Gibbs and Senior Director Ryan Goodnight, met Commerce Minister Piyush Goyal to discuss investments and partnerships, laying the groundwork for market entry. India’s satellite internet sector is heating up, with Eutelsat OneWeb and Reliance Jio also securing licenses, while Amazon’s Kuiper awaits approval.

Starlink India’s license enables SpaceX to initiate commercial operations within two months. The service will reportedly offer high-speed internet for ₹3,000 per month with unlimited data, requiring a ₹33,000 hardware kit, including a dish and router, targeting underserved and remote regions.

Starlink’s entry into India builds on its global network of over 7,000 satellites, designed to deliver low-latency internet to areas with limited broadband access. The company’s collaboration with Indian authorities and telecom giants like Reliance Jio and Bharti Airtel for distribution underscores its commitment to bridging the digital divide.

As Starlink prepares to launch services, its discussions with Scindia signal deepening ties with India’s government to support Digital India’s vision. “Satellite technologies are relevant and transformative,” Scindia noted, highlighting their role in empowering citizens. Starlink’s India expansion positions it to compete in a growing market, driving innovation and connectivity for millions in rural and remote areas.