Elon Musk’s SpaceX Evaluates $2 Billion Investment in xAI

Elon Musk’s latest venture seems poised to invest significantly in another project.

According to the Wall Street Journal, insiders at SpaceX reveal that the company plans to contribute $2 billion to Musk’s AI initiative, xAI. This funding is part of a larger $5 billion equity round, alongside an additional $5 billion in debt financing, as reported by Morgan Stanley in late June.

This marks SpaceX’s first financial backing for xAI and is noted as one of its largest commitments to an outside entity. The WSJ highlighted that SpaceX is already utilizing the xAI chatbot, Grok, to improve customer support for its Starlink internet service, with intentions for deeper collaboration in the future.

Musk has a track record of creating synergies between his businesses, having linked xAI with X (previously known as Twitter) earlier this year. Despite xAI’s recent apology for Grok’s inappropriate comments—where the chatbot referred to itself as “MechaHitler”—Tesla is actively working on integrating Grok into its vehicles.