Elon Musk’s artificial intelligence startup xAI is rapidly spending cash as losses deepen, according to internal documents.

The company reported a net loss of $1.46 billion for the quarter ended in September. That compares with a loss of about $1 billion in the first quarter. Over the first nine months of the year, xAI spent roughly $7.8 billion in cash.

The spending reflects heavy investment in data centers, hiring, and software development. The work is intended to support advanced artificial intelligence systems that could eventually power humanoid robots.

xAI executives told investors that the company is moving quickly through funds raised in recent financing rounds. The goal, they said, is to build AI systems that can operate independently and ultimately support robots such as Optimus, the humanoid project developed at Tesla.

During a recent investor call, company leaders said their main focus is accelerating the development of AI agents and related software. Those systems are expected to feed into a broader AI-only software effort referred to internally as “Macrohard,” a term Musk has previously used. The long-term plan is for that software to support Optimus.

Executives indicated that xAI believes it has sufficient resources to continue spending aggressively. Internal documents described the company’s growth trajectory as reaching “escape velocity,” a phrase Musk frequently uses to describe rapid expansion across his businesses.

Revenue at xAI nearly doubled from the prior quarter. The company reported $107 million in revenue for the three months ended Sept. 30, 2025, according to financial materials shared with investors.

Musk often connects operations across his companies. xAI’s chatbot, Grok, is integrated into X, the social media platform formerly known as Twitter, and is also available in Tesla vehicles. SpaceX has invested in xAI, while xAI has spent hundreds of millions of dollars on Tesla Megapack batteries.

Tesla is not currently an investor in xAI. Shareholders voted in November on a non-binding proposal for Tesla to invest, but the measure did not pass.

xAI Holdings, which controls both xAI and X, recently closed a $20 billion equity raise. The funding valued the company at $230 billion and is expected to support ongoing spending, which remains below $1 billion per month.