June 19, 2025

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Amazon AI Job Cuts, xAI Seeks $9.3B, $13B Spend in 2025

Elon Musk's AI company, xAI, is making headlines as it aggressively invests in AI development, particularly for its Grok chatbot. The company is reportedly burning through $1 billion per month and is seeking to raise $9.3 billion to sustain operations. Projections indicate xAI anticipates spending $13 billion in 2025 while only generating $500 million in revenue, with hopes of profitability by 2027. Meanwhile, the NAACP is considering suing xAI over pollution concerns related to its Memphis data center. In other AI news, Amazon CEO Andy Jassy has cautioned employees about potential job displacement due to AI advancements, urging them to adapt and innovate. This comes as various companies integrate AI to enhance efficiency and create new products. For example, Alpha Vision and A+ Guard are partnering to provide AI-powered security for retail stores, while Vaunt has launched an AI tool to offer real estate sales advice. The USPTO is also leveraging AI to streamline patent and trademark processes. Multiplier, backed by $27.5 million in funding, is acquiring accounting firms to integrate AI and boost efficiency. Invideo has introduced 'AI Twins' for video creation, and Bolt AI is helping coding novices build websites, including one with Stripe payment integration.

Key Takeaways

  • xAI is spending $1 billion monthly on AI development and aims to raise $9.3 billion to cover costs.
  • xAI projects $13 billion in spending for 2025 and hopes to be profitable by 2027.
  • The NAACP may sue xAI over pollution from its Memphis data center.
  • Amazon CEO Andy Jassy warned employees that AI could lead to job cuts.
  • Alpha Vision and A+ Guard are partnering to offer AI-powered retail security.
  • Vaunt launched an AI tool providing personalized sales suggestions for real estate.
  • The USPTO is using AI tools, including the Scout chatbot, to improve patent and trademark processes.
  • Multiplier raised $27.5 million to acquire accounting firms and integrate AI.
  • Invideo's 'AI Twins' feature allows users to clone themselves for video creation.
  • Bolt AI helped coding novices create a website with Stripe payment integration.

xAI spends big on AI, raising billions to stay afloat

Elon Musk's AI company, xAI, is spending about $1 billion each month as it develops AI technology like the Grok chatbot. The company is trying to raise $9.3 billion to cover these costs. xAI expects to spend $13 billion in 2025 but only make $500 million in revenue. They hope to be profitable by 2027 by using resources from Musk's social media company, X, and building their own infrastructure. Investors value xAI at $80 billion, but the company needs more money to keep up with its expenses.

xAI spends $1B monthly, seeks $9.3B to boost AI

xAI, Elon Musk's AI company, is reportedly spending $1 billion each month to develop AI models like Grok. The company is trying to raise $9.3 billion to fund its operations. xAI had $4 billion in cash in March 2025 and expects to profit by 2027. Unlike competitors, xAI uses resources from X and invests in its own server infrastructure. xAI also makes the Aurora image generator for X Premium subscribers.

Report: Elon Musk's xAI is burning $1 billion monthly

Elon Musk's AI company, xAI, is reportedly spending $1 billion a month, totaling $13 billion this year. The company is raising money from investors to keep up with these costs. xAI's main product is Grok, an AI chatbot. xAI hopes to use data from X to train Grok's algorithm. Despite being owned by the world's richest man, xAI is considered an underdog in the AI race against companies like OpenAI and Meta.

Samsung engineers leave amid AI chip race pressure

Engineers are leaving Samsung due to heavy workloads and lower bonuses. Amazon CEO Andy Jassy told employees that AI could impact their jobs. The NAACP plans to sue xAI over pollution from its supercomputer in Memphis. Donald Trump will likely extend the deadline for ByteDance to sell TikTok's U.S. operations again.

Amazon CEO Jassy says AI may cut jobs, pushes adoption

Amazon CEO Andy Jassy told employees that generative AI could take their jobs. He encouraged them to learn about AI to help the company improve and innovate. Jassy noted that AI would lead to a reduction in the company's workforce. Since becoming CEO in 2021, Jassy has focused on cutting costs and improving efficiency at Amazon.

Amazon CEO talks AI impact

The tech industry is talking about how AI will change the world.

AI retail security: Alpha Vision & A+ Guard team up

Alpha Vision and A+ Guard are partnering to offer AI-powered security for retail stores. Their system uses AI to watch video feeds and find suspicious activity. It also provides data on customer traffic. A+ Guard offers 24/7 monitoring and can send voice warnings or call the police. The system includes features like Magic Search for finding video footage and heatmaps for tracking customer movement.

Vaunt's AI tool gives real estate sales advice

Vaunt, a real estate platform, launched an AI tool that gives personalized sales suggestions. The AI analyzes potential buyers' activities and provides reports to help sales teams. These reports suggest how to improve communication and increase sales. Vaunt also offers AI tools for property descriptions and interactive tours. The platform is used by many developers and real estate agents.

USPTO uses AI to improve patent, trademark processes

The U.S. Patent and Trademark Office (USPTO) is using AI tools to make its work more efficient. These tools help employees focus on important tasks. One tool, called Scout, is a chatbot that helps find improper filings and detect cybersecurity threats. The USPTO is also looking for new AI tools to improve patent and trademark processes.

Ex-Stripe exec raises $27.5M for AI accounting roll-ups

Multiplier, founded by a former Stripe executive, raised $27.5 million to buy accounting firms and add AI. The company buys small service businesses and uses AI to make them more efficient. Multiplier's AI tools helped one firm double its profit margins by reducing manual work. The company aims to create an AI-powered competitor to the Big Four accounting firms.

NAACP may sue Musk's xAI over Memphis pollution

The NAACP and an environmental group plan to sue Elon Musk's xAI over pollution concerns in Memphis. The xAI data center uses gas turbines that emit pollutants without a permit. Opponents say the facility stresses the power grid and harms nearby Black communities. xAI says it takes its environmental responsibilities seriously and is investing in the community.

Invideo's AI Twins clone you for studio-quality videos

Invideo launched v4.0 with 'AI Twins,' allowing users to clone themselves or products for videos. Users can upload a short clip or product URL to create content in minutes. The platform uses 'Conversational Creation,' an AI-first workflow for video creation and editing. This helps creators and businesses make videos without cameras, crews, or big budgets. Users can create videos in over 50 languages.

Coding a website with AI: A novice's experience

A writer and his daughter, who are coding novices, used Bolt AI to create a website for her soap business. They used Bolt's vibe coding tool, which simplifies website creation. Bolt created a functional site with payment integration via Stripe in about 6 hours. The tool sometimes made mistakes and added untrue information, but it had a positive attitude. The Scrub Club website is now up and running.

Sources

xAI Elon Musk Grok AI Chatbot AI Funding AI Investment AI Infrastructure AI Revenue AI Profitability AI Model Development Aurora Image Generator X (formerly Twitter) OpenAI Meta AI Competition Samsung Amazon Andy Jassy AI Job Displacement Generative AI AI Adoption AI Retail Security Alpha Vision A+ Guard AI Video Analytics Vaunt AI Real Estate AI Sales Tools USPTO AI Patents AI Trademarks Multiplier AI Accounting AI Efficiency NAACP AI Pollution Data Center Invideo AI Twins AI Video Creation Bolt AI AI Website Builder Stripe AI Coding