Elon Musk’s SpaceX is set to invest $2 billion USD in his artificial intelligence company, xAI, according to a report by The Wall Street Journal, citing sources close to the deal.
This investment is part of xAI’s plan to raise a $5 billion equity fund, which was announced last month by Morgan Stanley. It marks SpaceX’s first known investment in xAI and is considered one of its largest investments in any external company.
Musk has increasingly used his business empire to support his AI ambitions. xAI, launched in 2023, is seen as a direct competitor to OpenAI, the creator of ChatGPT.
Earlier this year, Musk began integrating xAI into X (formerly Twitter) to expand the reach of its AI chatbot, Grok. This move reportedly pushed the new company’s valuation to $113 billion.
Musk has described Grok as “the world’s smartest AI” and noted that it also powers Starlink’s customer support system.
During the launch of Grok 4 on Wednesday, Musk hinted at plans to embed Grok into Tesla’s Optimus humanoid robots, suggesting even deeper integration of his AI technology across multiple companies.
