Morgan Stanley predicts: Musk's AI company xAI's revenue surges, valuation reaches $113 billion

According to the latest research report from Morgan Stanley, Elon Musk's artificial intelligence startup xAI is developing strongly and is expected to achieve a total revenue of US$1 billion by the end of 2025, and will continue to show explosive growth in the next five years. By 2029, xAI's annual revenue is expected to exceed US$13 billion, becoming one of the world's most promising AI companies.

The report also predicts that xAI's EBITDA (earnings before interest, taxes, depreciation and amortization) will continue to rise in the next few years, and is expected to reach US$2.7 billion in 2027 and further increase to US$13.1 billion in 2029. This figure highlights that xAI not only has a leading advantage in technology, but also has shown the feasibility and profitability of its business model.

In terms of infrastructure, xAI is also increasing its investment. It is reported that the company plans to spend up to US$18 billion on data center expansion to support its rapidly growing AI model training and reasoning needs. This investment will significantly enhance its computing power and help consolidate its core competitiveness in the AI large model track.

It is worth noting that xAI is currently preparing for a new round of financing with a valuation of up to $113 billion, reflecting the market's high recognition of its future growth prospects. This valuation has pushed it into the ranks of the world's most valuable AI unicorns, and has also made it another star company under Musk that has received high attention from the capital market after Tesla and SpaceX.

xAI was founded by Musk in 2023 and is positioned to build an artificial intelligence system with general intelligence capabilities. One of its core projects is the AI assistant "Grok" that is deeply integrated with the X platform (formerly Twitter). As a challenger to OpenAI, xAI continues to make breakthroughs in AI model architecture, data source integration, and user application scenarios.

Overall, xAI is accelerating towards a period of dual harvest in technology and business. Driven by capital support and industry support, this young AI company may reshape the competitive landscape in the field of artificial intelligence in the next few years.