Elon Musk’s artificial intelligence startup xAI is burning through $1 billion a month as the cost of building its advanced AI models races ahead of the limited revenues, according to people briefed on the company’s financials.

Elon Musk's AI startup, xAI, is reportedly spending $1 billion a month due to soaring costs of building advanced AI models and sluggish revenues.

Elon Musk’s AI startup xAI is in talks to finalise $4.3 billion in new equity funding and has plans to raise another $6.4 billion in capital for the next year, the company has told investors, according to a report by Bloomberg.