Elon Musk’s SpaceX has agreed to invest $2 billion in his artificial-intelligence company, xAI, investors close to the companies said, nearly half of the Grok chatbot maker’s recent equity raise, The Wall Street Journal reported.
Musk has repeatedly mobilized his business empire to boost the AI startup, which is racing to catch up with OpenAI. Earlier this year, he merged xAI with X, combining what was a small research lab with a social-media platform that helps amplify the reach of its Grok chatbot. The merger valued the new company at $113 billion.
The SpaceX investment is part of xAI’s $5 billion equity fundraise announced by Morgan Stanley last month. It is the rocketmaker’s first known investment into xAI and one of the largest in another company.
Since leaving his role in the Trump administration, Musk has turned his attention to training the latest version of Grok, which earned high marks from AI-benchmarking service Artificial Analysis for its performance following its release on Wednesday.
During Musk’s release of Grok 4 this week, he said he also aims to embed Grok into humanoid robots, like Tesla’s Optimus fleet.
Reuters reported: SpaceX has committed $2 billion to xAI as a part of a $5 billion equity round, deeming the ties between tech billionaire Elon Musk’s ventures and his artificial intelligence startup races to compete with OpenAi, The Wall Street Journal reported on Saturday.
The investment follows xAI’s merger with X and values the combined company at $113 billion, with the Grok chatbot now powering Starlink support and eyed for future integrations into Tesla’s Optimus robots, the report added.
In response to a post on X about whether Tesla could also invest in xAI, Elon Musk said on Sunday, “It would be great, but subject to board and shareholder approval,” without confirming or denying the Journal report on SpaceX’s investment plans in xAI.
TechCrunch reported: One Elon Musk company might be making a big investment in another.
According to a Wall Street Journal report that cites investors close to SpaceX, the company has agreed to invest $2 billion in Musk’s AI startup xAI. The investment would reportedly be part of the $5 billion equity raise (along with another $5 billion in debt) that Morgan Stanley announced at the end of June.
This would be SpaceX’s first investment in xAI and one of its biggest investments in another company. The WSJ says SpaceX already uses xAI’s chatbot Grok to power customer service for its Starlink Internet service, with plans for more partnerships.