According to (Bloomberg) reports, Tesla founder Elon Musk's xAI, founded just two years ago, is concurrently raising $9.3 billion: $4.3 billion in new equity and $5 billion in unsecured bonds. (Background: Telegram received $300 million in cash and equity from xAI, Musk invests to promote Grok, TON jumps 20%) (Supplementary background: Musk is pushing for the computing power of xAI! It is rumored to be raising a new round of financing with a goal of $6 billion) According to (Bloomberg) reports, Tesla founder Elon Musk's xAI, established just two years ago, is currently experiencing a cash outflow of up to $1 billion per month. If the current expansion pace continues, the total cash consumption for the whole year of 2025 may exceed $13 billion. To cope with the enormous expenditure pressure, the company is raising $9.3 billion in new funds: $4.3 billion in new equity and $5 billion in unsecured bonds. Financing portfolio at a glance According to reports, the equity portion is still being negotiated, with a target amount of $4.3 billion; the bond has an 8-year term and plans to offer a 6.5% annual interest rate, along with a conversion clause. Public data shows that xAI has raised a total of $14 billion in equity since its establishment in 2023. If this round is fully completed, the total fundraising will exceed $23 billion. Where will the funds be burned? If the new financing is successfully completed, the largest expenditure is expected to be on GPU clusters and Nvidia servers. Previously, foreign media analyzed xAI's next-generation Colossus supercomputer project, which could procure up to 1 million GPUs, with costs ranging from $35 to $40 billion, plus data purchasing and labeling costs, leading to a total investment far exceeding traditional software companies. It is worth mentioning that after xAI completed the acquisition of the X platform in March this year, its combined valuation rose to $80 billion; external investors revealed that if Grok can monetize significantly on X, the valuation could reach $113 billion. Moreover, xAI hopes to use the continuously updated data on X to train the company's new models, rather than paying for datasets like other AI companies. However, compared to OpenAI's discussions for $40 billion in financing at a valuation of $300 billion in March, there is still a gap between the two. Risks and next steps But we know that huge leverage could dilute shareholder equity and increase interest burdens. Investors are currently closely monitoring Grok's paid subscription conversion rate and the progress of integration with the X advertising backend. After Trump took office, the AI risk assessment mechanism in Biden's era executive orders may also be rewritten, and the regulatory landscape remains unclear. Musk previously warned on X: "The cost of AI safety is far higher than imagined." Nevertheless, if the new funds come in, xAI can at least sustain through the next round of model upgrades. Whether it can truly strike a balance between burning cash and monetization will depend on Grok's product penetration rate and the revenue contribution from the X ecosystem.