SpaceX is reportedly investing $2 billion into Elon Musk’s artificial intelligence startup, xAI, as part of a larger $5 billion equity round, according to The Wall Street Journal. The move significantly strengthens the integration between Musk’s tech ventures, with xAI racing to compete with leading AI companies like OpenAI.
The investment comes on the heels of xAI’s merger with X (formerly Twitter), placing the combined entity’s valuation at a staggering $113 billion. As part of this deepening collaboration, xAI’s Grok chatbot is now powering customer support for Starlink, SpaceX’s satellite internet service, and is being considered for future integration into Tesla’s Optimus humanoid robots.
While both SpaceX and xAI have yet to comment publicly on the report, the growing synergy between Musk’s companies reflects a broader strategy to align AI with space, robotics, and communication technologies.
Despite some recent controversies surrounding Grok’s responses, Musk has described it as “the smartest AI in the world.” The startup continues to pour resources into training its models and building out the necessary infrastructure, underscoring its ambition to become a major force in the competitive AI space.
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Source: NDTV