SpaceX Allocates 2 Billion Dollars to Develop xAI

The Wall Street Journal reported, quoting investors close to the company, the investment is part of xAI's 5-billion-dollar equity fundraise announced by Morgan Stanley last month. It is SpaceX's first known investment in xAI and one of its largest in another company.

Musk has repeatedly mobilized his business empire to boost the AI startup, which is racing to catch up with OpenAI, a leading AI research and deployment company best known for creating the ChatGPT platform.

Earlier this year, he integrated xAI into X, merging the AI research lab with the social media platform to enhance the reach of Grok. The merger valued the new company at 113 billion dollars, according to the report.

Musk called Grok "the smartest AI in the world," which powers customer-support features for SpaceX's satellite internet service, Starlink. During the release of AI chatbot Grok 4, Musk revealed his intention to embed Grok into humanoid robots, like Tesla's Optimus fleet.

Musk's representatives have said more business partnerships between SpaceX and xAI are likely in the future, according to the report.

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