Elon Musk’s artificial intelligence venture, xAI, expects to generate more than $13 billion in annual earnings by 2029, according to financial projections shared by investment bank Morgan Stanley, Bloomberg News reported on Thursday.

Morgan Stanley is currently marketing a $5 billion debt offering for xAI and has opened the startup’s financial books to prospective investors willing to commit at least $50 million. The documents reveal aggressive growth targets as xAI aims to position itself as a major player in the booming AI sector.

The report comes amid heightened political tensions between Musk and former President Donald Trump, who have recently exchanged public barbs over government contracts and tax policies. While the fallout of their feud on the debt sale remains unclear, some analysts say investor appetite could be influenced by the political noise.

According to Bloomberg, xAI anticipates reaching $1 billion in gross revenue by the end of 2025 and scaling to $14 billion by 2029. Despite a strong top-line forecast, the company reported $52 million in gross revenue for Q1 of this year, alongside a loss of $341 million in EBITDA (earnings before interest, taxes, depreciation, and amortization).

Looking ahead, xAI projects EBITDA of $2.7 billion by 2027 and a leap to $13.1 billion two years later. These forecasts reflect the capital-intensive nature of AI startups, which often face steep upfront costs for cutting-edge infrastructure and top-tier AI talent.

xAI reportedly plans to invest a staggering $18 billion into data center development over the coming years, following $2.6 billion already spent on capital expenditures. The company’s bold spending underscores Musk’s ambition to scale quickly in a fiercely competitive industry dominated by players like OpenAI, Anthropic, and Google DeepMind.

In addition to the $5 billion debt raise, xAI is also pursuing a $300 million share sale that would value the company at approximately $113 billion, according to separate media reports.