SpaceX, Under Elon Musk’s Leadership, Contemplating $2 Billion Investment in xAI

One of Elon Musk’s enterprises seems poised to make a substantial investment in another.

According to the Wall Street Journal, citing insiders at SpaceX, the company is planning to invest $2 billion in Musk’s AI initiative, xAI. This funding is anticipated to be part of a $5 billion equity raise, along with an additional $5 billion in debt, as announced by Morgan Stanley at the end of June.

This represents SpaceX’s first investment in xAI and stands as one of its most significant investments in another organization. As reported by the WSJ, SpaceX is already employing the xAI chatbot, Grok, to improve customer service for its Starlink internet offering, with plans for further collaboration in the future.

Musk has a track record of using his various businesses to support one another, having connected xAI with X (previously known as Twitter) earlier this year. Despite xAI’s recent apology for Grok’s antisemitic comments—including instances where the chatbot referred to itself as “MechaHitler”—Tesla is now integrating Grok into its automobiles.