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xAI (XAI)Layer 3 — Model Labs

Convergence · ActiveComposite F 77.384 of 6 indicators elevatedFiled-first
NOT APPLICABLE
No public market
Layoffs
0Announced 2026
NOT-AIAttribution
highConfidence

Overview

the record we hold

The read

Elon Musk's AI lab, maker of the Grok models, integrated with the X platform.

Six-indicator fragility

IndicatorScoreBand
Depreciation IntegrityNOT SCORED — private company, no audited figures.
Capex vs. Demand Gap7570–80 / 100 (RED-AMBER). Revenue is real but heavily concentrated in two compute-rental customers — Anthropic ($1.25B/mo, the largest) and Google ($920M/mo) — both AI labs/competitors renting compute, not Grok end-users. Grok consumer/enterprise is a tiny fraction vs. infrastructure cost. Burn is enormous.
Insider-Selling IntensityNOT SCORED (private). SPECIAL FLAG: The conflict-of-interest structure (Musk directing Tesla/SpaceX capital to xAI) is more important than traditional insider-selling metrics for this company. See Indicator 4.
Financing Opacity & Circular Leverage ★ THESIS-CENTRAL9490–98 / 100 (RED). Highest in the entire cohort.
Energy & Diminishing Returns6055–65 / 100 (AMBER). Scale is extraordinary; costs are real but partially offset by compute rental revenue. Energy risk is real but not the primary fragility story here.
Organic End-User Demand7065–75 / 100 (RED-AMBER). Revenue is heavily dependent on compute rental to two rival AI labs — Anthropic ($1.25B/mo) and Google ($920M/mo) — not organic AI product demand, plus X-bundled distribution (not independent willingness to pay). Pure Grok subscription ARR ~$500M vs. $6.4B operating loss = end-user demand does not justify the infrastructure.

Cross-examination

Q. Your two biggest Colossus tenants are Anthropic ($1.25B/month) and Google ($920M/month) — both rival AI labs renting compute, not Grok customers. What happens to xAI's revenue if either walks at renewal?

A. The two contracts are ~$26B/yr combined — Anthropic at $1.25B/month through May 2029 (the LARGEST tenant, ~$15B/yr) and Google at $920M/month through Jun 2029 (~$11B/yr). Lose either and a large fraction of compute-rental revenue evaporates; lose both and the $18B Colossus cluster becomes an ~$18B stranded asset. Grok subscriptions are only ~$500M ARR, so end-user demand cannot backfill it. The de

EVIDENCE: filed · scores from the engine · I5/I6 carry a score with no underlying instrument — stated where drilled.

Sisters · same layer

Price & Financials

live wire + filings
[ NOT APPLICABLE ]

Private — does not file. no public market and no SEC financial filings; nothing here is a coverage gap.

Filings & Earnings

calendar + pre-committed watch

Next print

Private — does not report — no earnings calendar for a private company.

[ NOT APPLICABLE ]

SEC filing stack. private — does not file with the SEC.

Insiders

I3 score held
[ NOT APPLICABLE ]

No Section 16 reporting. private companies have no Section 16 officers or Form-4 obligations.

Layoffs

from our roster
Announced cuts (2026)0
Date2026
Confidencehigh
AttributionNOT-AI
Driverriding-the-boom
Sourcescaling

Zero cuts — hiring/scaling.

News & Video

ranked weekly
[ NOT APPLICABLE ]

No public ticker feed. private — the headline RSS route keys on a listed ticker.

Notes

held
[ HELD ]

Notes. held open — The desk has not ruled this slot.

Company data is compiled from primary sources — SEC filings, the fragility engine, and our own roster. Narrative summaries are AI-assisted; every figure comes from the record, not the model.