Elon Musk Unveils X Money Rollout Plans for Mid-2025 Expansion, Including Payments Integration

Elon Musk's X platform is set to launch X Money services mid-2025, integrating payments and investment features. Musk's experience with PayPal drives the strategy, and the community anticipates Bitcoin inclusion. The rollout aims to disrupt social media financial ecosystems, but regulatory landscapes may pose hurdles.

Elon Musk's xAI, established in mid-2023, is aggressively pursuing its goal of becoming the world's leading AI company. However, its ambitious plans are taking a significant toll on its financial resources. According to a Bloomberg report [1], xAI is currently burning through $1 billion each month, with plans to spend around $13 billion this year alone. Despite earning approximately $500 million, the company is expected to end the year deep in the red.

xAI's expenditures are primarily driven by its investment in data centers and advanced hardware. The company has already spent billions on data centers, including one that houses a cluster with 200,000 Nvidia Hopper GPUs. Musk has also announced plans to build a supercomputer with one million Blackwell GPUs, a project estimated to cost between $50 billion and $62.5 billion [1].

Despite raising $14 billion in equity since its founding, xAI had only $4 billion remaining at the end of March 2025. The company expects to spend most of this remaining cash by the end of the second quarter [1]. To alleviate financial pressure, xAI is seeking $9.3 billion in new funding, with $4.3 billion coming from an equity round and $5 billion through debt [1].

xAI's valuation has climbed to $80 billion as of the first quarter of 2025, up from $51 billion at the end of 2024. Major investors, including Andreessen Horowitz, Sequoia Capital, and VY Capital, have been attracted by Musk's track record and influence [1].

In contrast, OpenAI is expected to generate $12.7 billion this year but will not be profitable. xAI executives project that the company could achieve profitability by 2027, while OpenAI anticipates positive cash flow by 2029 [1].

References:
[1] https://www.tomshardware.com/tech-industry/artificial-intelligence/elon-musks-xai-is-projected-to-lose-usd13-billion-in-2025-ai-project-burns-usd1-billion-a-month-in-expenditures