Home / xAI News: Forecasts, Grok Training, & Supercomputer Controversy

xAI News: Forecasts, Grok Training, & Supercomputer Controversy

By: Jasmin Espinas
June 6, 2025

xAI, the artificial intelligence company founded by Elon Musk, is scaling rapidly. In recent xAI news, the company expects $13 billion in annual earnings by 2029, signaling aggressive growth plans as it competes with companies like OpenAI, Anthropic, and Google DeepMind.

This roundup also includes three notable developments: Grok voice model training, the company’s partnership with Telegram, and the backlash of its ongoing supercomputer development.

Latest xAI News: xAI Forecasts $13 Billion in Annual Earnings by 2029

xAI expects to generate more than $13 billion annually by 2029, according to projections shared with prospective investors.

The xAI news came through a Morgan Stanley pitch, as the bank is working to secure $5 billion in debt financing for the artificial intelligence startup.

According to Bloomberg, Morgan Stanley opened xAI to potential backers willing to commit at least $50 million.

These figures include a $1 billion revenue target for 2024, a projected $14 billion top line by 2029, and a jump in EBITDA from a current deficit of $341 million to $13.1 billion in four years.

In addition, xAI reportedly plans to invest $18 billion into data centers after already spending $2.6 billion.

The timing of these disclosures coincides with the feud between Elon Musk and Donald Trump, which Bloomberg noted could affect investor interest, although the impact remains unclear.

Separate reports on Tuesday, June 3, say xAI also aims for a $113 billion valuation through a $300 million share sale. Neither xAI nor Morgan Stanley commented publicly on the disclosures.

xAI News: Grok Voice Models Trained Using Mars and Apocalypse Scenarios

In another xAI news, new internal documents reviewed by Business Insider detail how xAI trains voice models through an initiative called Project Xylophone.

Operated by Scale AI, the project instructs gig workers to record scripted conversations on topics ranging from ethics to postapocalyptic planning.

Although the documents don’t name the specific model, the timing aligns with Grok’s voice mode beta launch in February.

Participants are asked to simulate natural-sounding conversations, sometimes as three-person teams on Zoom. Prompts include designing a culture for a Mars colony or discussing ways to manage panic attacks.

Business Insider noted that around 10% of the available topics relate to science fiction. Contractors are encouraged to focus on tone, clarity, and performance. Voice acting experience is also preferred.

This project reflects efforts to give AI more human-like expressions. Meta has tested similar tactics, while OpenAI has worked to adjust its model’s tone.

xAI, which promotes Grok as less filtered than competitors, continues to expand its data-gathering workforce and monitor output more closely.

After recent incidents involving offensive replies, the company is now stress-testing Grok responses and has added stricter code reviews to reduce risk.

xAI News: xAI and Telegram Partner to Bring Grok to Messaging Users

In this round of xAI news, the company plans to pay Telegram $300 million to integrate its Grok chatbot into the platform, aiming to expand access to over one billion users.

The agreement, still pending formal signatures, includes a revenue-sharing model where Telegram receives half of all subscription sales generated through its app.

No deal has been signed

— Elon Musk (@elonmusk) May 28, 2025

Telegram founder Pavel Durov confirmed the terms, adding that the payment will include both cash and stock.

Durov also clarified that xAI will only see data that users share directly with Grok.

As open-source datasets become harder to rely on, companies like Meta have turned to public conversations to train models.

xAI, which also owns X, already trains using public posts from that platform.

It’s unclear whether Telegram conversations will be used similarly, though the setup may give xAI more flexibility in refining Grok’s performance.

The company has yet to issue a formal statement on the agreement.

xAI’s Memphis Supercomputer Project Faces Pollution Backlash

xAI’s effort to build the world’s most powerful AI supercomputer has stirred local resistance in southwest Memphis.

The company moved into an abandoned factory last year, naming the site “Colossus,” with promises of jobs and economic benefits.

Memphis officials promoted the project as a step toward transforming the city into a tech hub.

However, nearby residents in Boxtown, a predominantly Black neighborhood long impacted by industrial pollution, view the facility as another environmental burden.

This part of Memphis already houses 17 industrial sites, including a refinery and a gas-fired power plant.

Community leaders say xAI’s arrival follows a familiar pattern: corporate development with environmental costs borne by vulnerable neighborhoods.

The concern has grown more urgent as federal environmental protections weaken and AI development gains political backing.

xAI also confirmed plans for a one million-square-foot expansion, further raising alarms among residents.

Local organizers, including Memphis Community Against Pollution, reject the idea that the opposition is personal.

Instead, they point to years of documented pollution and legal battles, including a successful campaign in 2021 that blocked a crude oil pipeline.

For residents like Sarah Gladney, the fight feels constant. Still, the push for clean air continues as xAI’s Memphis footprint grows.