xAI Projects $13 Billion Annual Earnings by 2029

xAI, the artificial intelligence startup founded by Elon Musk, expects to generate more than $13 billion in annual earnings by 2029, reports Reuters. This projection comes as Morgan Stanley, the company's banker, seeks investors for a $5 billion debt sale.

Morgan Stanley has opened xAI's financial records to potential investors willing to commit at least $50 million. The AI startup anticipates reaching $1 billion in gross revenue by the end of this year and $14 billion by 2029. Despite a first-quarter gross revenue of $52 million, xAI reported a loss of $341 million before interest, taxes, depreciation, and amortization (EBITDA).

The company plans significant investments in data centers, with $18 billion earmarked for future expenditures after already spending $2.6 billion. Besides the debt sale, xAI is also pursuing a valuation of $113 billion through a $300 million share sale. Morgan Stanley and xAI have not commented on these developments.