SpaceX has pledged a significant $2 billion investment in xAI, Elon Musk’s artificial intelligence venture, according to a report published by the Wall Street Journal. The funding forms part of a larger $5 billion equity round and signals a deepening alignment between Musk’s various business interests as xAI scales up to rival OpenAI.
The development comes shortly after xAI merged with X, the social media platform also owned by Musk. This consolidation places the valuation of the combined entity at $113 billion. The move underscores Musk’s ambition to integrate AI across his portfolio of companies, with the Grok chatbot—developed by xAI—already deployed to support customer services within Starlink, SpaceX’s satellite internet business.
Further applications are under consideration, with Grok expected to play a role in Tesla’s Optimus robot project. Despite attracting criticism over some of Grok’s recent responses, Musk has maintained that it is “the smartest AI in the world.” xAI is continuing to invest heavily in the development of its models and supporting infrastructure in pursuit of that claim.
Requests for comment sent to both SpaceX and xAI by Reuters have not yet received a response.
